The Mendez Company Is Trying to Decide Whether to Replace

question 85

Essay

The Mendez Company is trying to decide whether to replace a packing machine that it uses to pack salsa into individual serving size packages. The following information is provided:
Required:
1) Compute the increase or decrease in total net income over the five-year period if the company chooses to buy the new machine.2) Compute the impact on the company's net income in the first year if the current machine is replaced. Do not take depreciation into account.3) Under what circumstances might a manager not take the action that is in the best interest of the firm in the long run?
$\begin{array}{lr}\text { Current machine: }\\\text { Original cost } & \$ 26,000 \\\text { Accumulated depreciation } & 16,000 \\ \text { Annual operating costs } & 4,000 \\ \text { Current salvage value } & 4,000 \\ \text { Salvage value at the end of five years } & 1,000\\\\\text { New machine: }\\\text { Cost } & \$ 16,000 \\\text { Annual operating costs } & 1,000 \\\text { Salvage value at the end of five years } & 1,000\end{array}$

Comprehend the structure and execution flow of switch-case statements.

Distinguish between the uses of the equality operator (==) and the assignment operator (=).

Understand the order of precedence for logical operators.

Recognize the implications of using break statements within switch cases.

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Definitions:

Foot-In-The-Door Phenomenon

A psychological tactic where getting a person to agree to a small request makes them more likely to agree to a larger request later.

Attitude

A psychological construct consisting of cognitive, affective, and behavioral components that reflects a person's likes or dislikes and predispositions toward certain ideas, objects, people, or situations.

Dispositional Attribution

The inclination to ascribe an individual's actions more to their character traits or personality rather than to the circumstances they are in.

Situational Attribution

The process of attributing behavior to external factors or circumstances rather than to internal personality traits.