considered , with a cost of $ 60,000 . The new machine is more efficient and it will only cost $ 200 a month for maintenance and repairs . The new machine has an expected life of 10 years . In deciding to replace the old machine , which of the following factors , ignoring income taxes , should ABC not consider ?
19 . Egan Co . owns land that could be developed in the future . Egan estimates it can sell the land for $ 1,200,000 , net of all selling costs . If it is not sold , Egan will continue with its plans to develop the land . As Egan evaluates it options for development or sale of the property , what type of cost would the potential selling price represent in Egan ' s decision ?
20 . Which of the following statements is true regarding opportunity cost ?
21 . For the year ended December 31 , 2004 , Abel Co . incurred direct costs of $ 500,000 based on a particular course of action during the year . If a different course of action had been taken , direct costs would have been $ 400,000 . In addition , Abel ' s 2004 fixed costs were $ 90,000 . The incremental cost was
22 . Pole Co . is investing in a machine with a 3-year life . The machine is expected to reduce annual cash operating costs by $ 30,000 in each of the first 2 years and by $ 20,000 in year 3 . Present values of an annuity of $ 1 at 14 % are : Using a 14 % cost of capital , what is the present value of these future savings ?
23 . Which one of the following kinds of tables most likely would be used to determine the current worth of five equal amounts to be received at the end of each of the next five years .
24 . Which of the following changes would result in the highest present value ?