Daniels Corp. is considering replacing one of its production machines. The CEO feels that new machine is more efficient and hence will save costs to the company. The following information is available: Old Machine New Machine Original cost $10,000,000 $9,500,000 Useful life 6 years 3 years Current age 3 years 0 Remaining useful life 3 years 3 years Accumulated depreciation $5,000,000 Book value $5,000,000 Current disposal value $50,000 Terminal disposal value (2 years from now) 0 $0 Annual operating costs $12,000,000 $8,500,000
Should Daniels Corp. replace the old machine?

In which of the following games is it clearly the case that the cooperative outcome of the game is good for the two players and bad for society? a. two oil companies own adjacent oil fields over a common pool of oil, and each company decides whether to drill one well or two wells.b. two airlines dominate air travel between city a and city b, and each airline decides whether to charge a "high" airfare or a "low" airfare on flights between those two cities.c. two superpowers decide whether to build new weapons or to disarm.d. in all of the above cases, the cooperative outcome of the game is good for the two players and bad for society