Sailcloth & More Currently Produces Boat Sails and Is Considering

question 61

Multiple Choice

Sailcloth & More currently produces boat sails and is considering expanding its operations to include awnings for homes and travel trailers.The company owns land beside its current manufacturing facility that could be used for the expansion.The company bought this land 5 years ago at a cost of $319,000.At the time of purchase,the company paid $24,000 to level out the land so it would be suitable for future use.Today,the land is valued at $295,000.The company has some unused equipment that it currently owns valued at $38,000.This equipment could be used for producing awnings if $12,000 is spent for equipment modifications.Other equipment costing $490,000 will also be required.What is the amount of the initial cash flow for this expansion project?

• A)-$785,000
• B)-$823,000
• C)-$835,000
• D)-$859,000
• E)-$883,000

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Definitions:

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Reward System

A structured plan designed to motivate and recognize employees' performance, often including financial and non-financial rewards.

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The ability to continue steadfastly or firmly in some purpose, course, or task, despite difficulties or obstacles.

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The management and focus of cognitive resources on specific stimuli while ignoring others, crucial for effective task performance.