When to Replace an Asset: Nemo Haulers Is Considering Whether

question 30

Multiple Choice

When to replace an asset: Nemo Haulers is considering whether to purchase a new mini tractor for moving furniture within its warehouse. Nemo calculates that its current mini tractor generates $3,100 of cash flow per year. A new mini tractor would cost $3,000 and would provide cash flow of $4,000 per year for five years. What is the equivalent annual cash flow for the new mini tractor (round to the nearest dollar) , and should Nemo purchase the new tractor? Assume the cost of capital for Nemo is 10 percent.

• A) $3,000, do not purchase the new tractor
• B) $3,209, purchase the new tractor
• C) $4,000, purchase the new tractor
• D) $12,163, purchase the new tractor

Distinguish the economic differences between New England and the Chesapeake colonies.

Acknowledge the significance of John Winthrop's views on civil or federal liberty.

Understand the outcomes and significance of the Pequot War.

Grasp the effects of Protestant-Catholic conflict on English colonies, specifically Maryland.

---

Definitions:

Display Rules

Culturally based guidelines that dictate how emotions should be expressed and when and where their expression is appropriate.

Motivation

The psychological process that gives behavior purpose and direction.

Biology

The systematic examination of living beings and life itself, focusing on their formation, operation, development, evolutionary history, and spatial spread.

Stimuli

External agents or occurrences that provoke a response from a living organism or a system.