'Synergies' occur when the output of some units in a firm can be used as inputs to other units, lowering cost and generating profits

All travel distribution channels and sectors were fundamentally changed by the advent of the internet

a. true b. false

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