Lc corp. has an old machine with variable costs of $164,200 per year. lc is looking at two replacement options. option a costs $210,000 and has $118,000 per year in variable costs. option b costs $216,000 and has $114,400 in per year variable costs. all machines have a six year life. the old machine will sell for $19,200. which of the following lists lc’s options from least costly to most costly?

a : retaining the old machine is least costly, followed by option b, then option a.
b : option b is least costly, followed by option a, then retaining the old machine.
c : retaining the old machine is least costly, followed by option a, then option b.
d : option a is the least costly, followed by option b, then retaining the old machine.

Which of the following actions would be most likely to reduce potential conflicts of interest between stockholders and managers? a. change the corporation's formal documents to make it easier for outside investors to acquire a controlling interest in the firm through a hostile takeover. b. eliminate a requirement that members of the board of directors must hold a high percentage of their personal wealth in the firm's stock. c. for a firm that compensates managers with stock options, reduce the time before options are vested, i.e., the time before options can be exercised and the shares that are received can be sold. d. pay managers large cash salaries and give them no stock options. e. beef up the restrictive covenants in the firm's debt agreements.