Jake's Janitorial Service employs thirty minimum-wage workers. The janitorial industry in his market area employs around six thousand minimum-wage workers. Other industries in the area employ almost three million minimum-wage workers. A change in government regulations regarding sanitation in the workplace causes a 3% increase in demand for janitorial workers. Given this information, it is likely that the janitorial industry is a(n) industry because . circular cost; it hires workers that have the skills used in other industries. increasing cost; its wage bill will rise as it employs more workers. constant cost; it employs a very small percentage of minimum wage workers. decreasing cost; it pays workers such low wages.

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