JB Lumber Corporation is downsizing operations and has to decide which of its large saws should be sold. JB currently has four saws but only needs to keep three. All four saws have a remaining useful life of 3 years and will all have a salvage value of zero at the end of those 3 years. Also, all four saws have equal annual operating costs and output efficiency. Information related to the four saws is provided below:
In order to maximize profits for the next three years, which machine would be most beneficial for JB to sell?
A) 1
B) 2
C) 3
D) 4

Question

JB Lumber Corporation is downsizing operations and has to decide which of its large saws should be sold. JB currently has four saws but only needs to keep three. All four saws have a remaining useful life of 3 years and will all have a salvage value of zero at the end of those 3 years. Also, all four saws have equal annual operating costs and output efficiency. Information related to the four saws is provided below: 
In order to maximize profits for the next three years, which machine would be most beneficial for JB to sell?
A) 1 
B) 2 
C) 3 
D) 4

Quizplus · Accepted Answer

The Answer of JB Lumber Corporation is downsizing operations and has to decide which of its large saws should be sold. JB currently has four saws but only needs to keep three. All four saws have a remaining useful life of 3 years and will all have a salvage value of zero at the end of those 3 years. Also, all four saws have equal annual operating costs and output efficiency. Information related to the four saws is provided below: 
In order to maximize profits for the next three years, which machine would be most beneficial for JB to sell?
A) 1 
B) 2 
C) 3 
D) 4

JB Lumber Corporation Is Downsizing Operations and Has to Decide