In calculating the payback period where new equipment is replacing old equipment, any salvage value to be received on disposal of the old equipment should be deducted from the cost of the new equipment.
Answer the following statement true (T) or false (F)
True
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Some legal experts believe that the pressures of global competition have resulted in an increased incidence of price-fixing and collusion among companies
Indicate whether the statement is true or false
The decision of an arbitrator is called a(n):
A) verdict. B) judgment. C) award. D) binding decision.
________ refers to the fact that services cannot be saved, stored, resold, or returned.
A. Simultaneous production and consumption B. Heterogeneity C. Perishability D. Incompatibility E. Intangibility
Cannula Vending Corporation is expanding operations and needs to purchase additional vending machines. There are currently two companies, Viscera, Inc. and Gullet International, that produce and sell machines that will do the job. Information related to the specifications of each company's machine are as follows (Ignore income taxes.): VisceraGulletPurchase price per machine$18,000 $24,000 Useful life of machine 5years 5yearsExpected salvage value of machine in 5 years$2,000 $5,000 Estimated annual operating cost per machine$4,000 $3,000 Refer to Exhibit 12B-1 and Exhibit 12B-2, to determine the appropriate discount factor(s) using the tables provided.Cannula's discount rate is 18%. Cannula uses the straight-line method of depreciation. Using net present value analysis, which
company's machine should Cannula purchase and what is the approximate difference between the net present values of the competing company's machines? A. Viscera, $3,438 B. Viscera, $1,562 C. Viscera, $1,749 D. Gullet, $127