From the mid-50s to the mid-60s some foreign competition began to emerge, and as a result, big business in the United States

Smith Industries is considering replacing a machine that is presently used in its production process

Which of the following is irrelevant to the replacement decision? Old Machine Replacement Machine Original cost $70,000 $45,000 Remaining useful life in years 5 5 Current age in years 5 0 Book value $33,000 Current disposal value in cash $10,000 Future disposal value in cash (in 5 years) $0 $0 Annual cash operating costs $7,000 $4,000 Which of the information provided in the table is irrelevant to the replacement decision? A) the sales price of the new machine B) the original cost of the old machine C) the current disposal value of the old machine D) the annual cash operating costs

To complete his business bookkeeping work each month, a business owner spends about 20 hours and in the process, has to give up $900 in income. If he hired a bookkeeper to do the work, the job would be completed in 15 hours and would cost him $600

Should the owner hire the bookkeeper or continue to do the work himself? A) He should hire the bookkeeper because the bookkeeper has an absolute advantage in completing the books. B) He should do the bookkeeping himself because he has an absolute advantage in completing the books. C) He should hire the bookkeeper only if the bookkeeper agrees to give him a discount on the service price. D) He should hire the bookkeeper only if the bookkeeper is willing to complete the work in 12 hours.