Bradley Industries Is Considering Replacing a Machine That Is Presently

question 37

Multiple Choice

Bradley Industries is considering replacing a machine that is presently used in its production process. Which of the following is irrelevant to the replacement decision?
$$\begin{array} { | l | r | r | } \hline & \text { Old Machine } & \begin{array} { l } \text { Replacement } \\\text { Machine }\end{array} \\\hline \text { Original cost } & \$ 55,000 & \$ 45,000 \\\hline \text { Remaining useful life in years } & 5 & 5 \\\hline \text { Current age in years } & 5 &0 \\\hline \text { Book value } & \$ 33,000 & \\\hline \text { Current disposal value in cash } & \$ 9000 & \$ 0 \\\hline \text { Auture disposal value in cash (in 5 years) } & \$ 8000 & \$ 4500 \\\hline\end{array}$$ Which of the information provided in the table is irrelevant to the replacement decision?

• A) the sales price of the new machine
• B) the original cost of the old machine
• C) the current disposal value of the old machine
• D) the annual cash operating costs for both machines

Understand public goods and their characteristics.

Identify the role of government in market economies.

Analyze supply-side and demand-side market failures.

Understand the impact of externalities on market efficiency.

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Definitions:

Culture Differences

are the variations in the practices, customs, and norms observed among different societies, ethnic groups, or cultures.

Binocular Cues

Visual information taken in by both eyes that aids in depth perception, including stereopsis, convergence, and the vergence movement.

Monocular Cues

Visual information that allows for perception of depth and distance using one eye.

Depth Perception

The visual ability to perceive the world in three dimensions and judge the distance of an object.