For each situation below, determine (1) if the variable is discrete or continuous and (2) if the

Question:

For each situation below, determine (1) if the variable is discrete or continuous and (2) if the information involves certainty, risk, and/or uncertainty.

(a) The first cost of a new front-end loader is $34,000 or $38,000 depending on the size purchased.

(b) The raises for engineers and technical staff employees will be 3%, or 5%, with one-half getting 3% and one-half getting 5%.

(d) The salvage value for an old machine will be $500 (i.e., its asking price) or $0 (it will be thrown away).

(e) Profits are equally likely to be up anywhere from 25% to 60% this year.

Salvage Value
Salvage value is the estimated book value of an asset after depreciation is complete, based on what a company expects to receive in exchange for the asset at the end of its useful life. As such, an asset’s estimated salvage value is an important...