The Manager of Big Mac Ltd Is Considering the Purchase

question 100

Multiple Choice

The manager of Big Mac Ltd is considering the purchase of equipment to make hamburgers that will reduce annual operating costs by $1500. The equipment will cost $6000 and will have a useful life of five years with no resale value. The new equipment will replace equipment purchased five years ago at a cost of $10 000, that has a book value of $5000 and no resale value. What will be the net effect on profit for the next five years in total if the new equipment is purchased? (Ignore tax effects.)

• A) $7500 increase
• B) $4500 decrease
• C) $3500 decrease
• D) $1500 increase

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Definitions:

Genetic Engineering

Human-induced changes in the genome of an organism, often performed for the benefit of humans.

DNA Fingerprinting

A technique used to identify individuals based on unique patterns of their DNA, commonly used in forensics, paternity testing, and genetic testing.

PCR

Polymerase Chain Reaction, a laboratory technique used to amplify DNA sequences, making millions of copies of a specific DNA section.

Restriction Enzymes

Proteins used in molecular biology that cut DNA at specific sequences, important for DNA modification and analysis tasks.