Princess Products is considering replacing all its plastic i…

Princess Products is considering replacing all its plastic injection molding machine with a new, more efficient one.  The existing machine was purchased five years ago for $100,000 and was being depreciated straight-line to zero overs its ten-year life.  It could currently be sold for $40,000, but would have no salvage value at the nd of its ten-year life.  The new machine won’t increase revenue, but will reduce expenses by $25,000 per year.  It will cost $75,000 and have a useful life of five years.  It will be depreciated straight-line to zero over its useful life.  It will have no salvage value at the end of its life.  The firm’s tax rate is 30% and the required rate of return is 10%.  What is the NPV of the equipment replacement?

A patient sued a hospital in federal court for medical negli…

A patient sued a hospital in federal court for medical negligence. The patient’s complaint alleges the following: She was admitted to the hospital suffering from a serious lung infection. The doctors prescribed her a powerful antibiotic drug. After two days, her condition had greatly improved. The doctors then changed her prescription to a different, untested antibiotic. Over the course of the next three days, her symptoms rapidly worsened and she ended up suffering permanent lung damage. The doctors did not reinstate the use of the original antibiotic.The hospital moves to dismiss the complaint for failure to state a claim upon which relief can be granted. It argues that the patient has not adequately pleaded the element of causation: i.e., that the change in antibiotic caused the lung damage to occur. What should the federal court do?