JB Lumber Corporation Is Downsizing Operations and Has to Decide

question 129

Multiple Choice

JB Lumber Corporation is downsizing operations and has to decide which of its large saws should be sold. JB currently has four saws but only needs to keep three. All four saws have a remaining useful life of 3 years and will all have a salvage value of zero at the end of those 3 years. Also, all four saws have equal annual operating costs and output efficiency. Information related to the four saws is provided below:
In order to maximize profits for the next three years, which machine would be most beneficial for JB to sell?

• A) 1
• B) 2
• C) 3
• D) 4

---

Definitions:

Culture-Bound Syndrome

A mental or physical illness recognized only within a specific culture or society, often with symptoms that are unique to that cultural setting.

Anxiety

Anxiety is a mental health disorder characterized by feelings of worry, anxiety, or fear that are strong enough to interfere with one's daily activities.

Realistic

Pertaining to the acceptance and representation of things as they are, often in art and literature, or having practical expectations.

Free-Floating Anxiety

Anxiety that is unrelated to any specific and known cause.