Suppose company A can produce shovels for $8 each, axes for $12 each, and rakes for $15 each. Company B can produce shovels for $10 each, axes for $11 each, and rakes for $17 each. Company A sells each item for $5 more than its production cost. Company B sells shovels for $13, axes for $15, and rakes for $18. Which of the following statements is true? A. Company B has a comparative advantage in the production of shovels. B. Company B has a comparative advantage in the production of axes. O C. Company A has a comparative advantage in the production of rakes. D. Company A has a comparative advantage in the production of axes.

The gilbert instrument corporation is considering replacing the wood steamer it currently uses to shape guitar sides. the steamer has 6 years of remaining life. if kept,the steamer will have depreciaiton expenses of $650 for five years and $325 for the sixthyear. its current book value is $3,575, and it can be sold on an internet auction site for$4,150 at this time. if the old steamer is not replaced, it can be sold for $800 at the endof its useful life. gilbert is considering purchasing the side steamer 3000, a higher-end steamer, whichcosts $12,000 and has an estimated useful life of 6 years with an estimated salvage value of$1,500. this steamer falls into the macrs 5-year class, so the applicable depreciationrates are 20.00%, 32.00%, 19.20%, 11.52%, 11.52%, and 5.76%. the new steamer is fasterand allows for an output expansion, so sales would rise by $2,000 per year; the newmachine's much greater efficiency would reduce operating expenses by $1,900 per year.to support the greater sales, the new machine would require that inventories increase by$2,900, but accounts payable would simultaneously increase by $700. gilbert's marginalfederal-plus-state tax rate is 40%, and its wacc is 15%.a. should it replace the old steamer? b. npv of replace = $2,083.51