The expected value of a discrete random variable is greater than or equal to zero

The Mountain Jam Company purchased a machine 5 years ago for $70,000. It has an estimated life of 7 years from the time of purchase and is expected to have zero salvage value at the end of 7th year. The old machine can be sold today for $60,000

A new machine can be purchased for $69,300. It has a 2-year life and is expected to reduce operating expenses by $50,000 per year. Sales aren't expected to change. After 2 years, the new machine can be sold for $20,000. The company uses the straight-line method to calculate depreciation for both machines. The tax rate is 40%. What is the cash flow from the replacement project for Year 1? A) $27,684 B) $34,316 C) $39,860 D) $50,000 E) $31,544

The major accounts in the acquisition and payment cycle are inventory, cost of goods sold, accounts payable, and other expense accounts

a. True b. False Indicate whether the statement is true or false