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:

U-joint Working Angles

The angles at which a universal joint operates, crucial for the proper transfer of rotary motion in drivelines.

Longitudinal Torque Rod

A rod in the suspension system of a vehicle that helps to manage longitudinal forces, aiding in the control of wheel alignment and handling.

Working Angles

The angles formed by the axis of the input and output shafts in a drivetrain, affecting the efficiency and vibration of the system.

Tandem Drive Truck

A truck with two drive axles at the rear, providing additional traction and load capacity.