Jorgensen Company Is Considering the Replacement of Equipment Used in Operations.The

question 58

Essay

Jorgensen Company is considering the replacement of equipment used in operations.The following data are available:
$\begin{array}{lll}&\text { Old Machine }&\text { NEW Machine }\\\text { Original cost } & \$ 210,000 & \$ 40,000 \\\text { Useful life in years } & 12 & 7 \\\text { Current age in years } & 5 & 0 \\\text { Book value } & \$ 65,000 & -\\\text { Disposal value now } & \$ 30,000 & - \\\text { Disposal value in } 7 \text { years } & 0 & 0 \\\text { Annual cash operating costs } & \$ 9,000 & \$ 8,000\end{array}$
Required:
A) Prepare a cost comparison for replacing the old equipment. Use only relevant items and add the items together for the next 7 years.
B) Should the old equipment be replaced?

• A) Prepare a cost comparison for replacing the old equipment. Use only relevant items and add the items together for the next 7 years.
• B) Should the old equipment be replaced?

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Definitions:

Neurotransmitters

Chemicals located and released in the brain to allow an impulse from one nerve cell to pass to another nerve cell.

Electron Microscope

A type of microscope that uses a beam of electrons to create an image of a specimen, offering higher resolution than traditional light microscopes.

Synaptic Structure

Refers to the physical and functional arrangement of synapses, which are the points of communication between neurons, allowing for the transmission of signals.

Action Potential

Large, brief reversal in the polarity of an axon membrane.