Jamestown Ltd

question 78

Multiple Choice

Jamestown Ltd.currently produces boat sails and is considering expanding its operations to include awnings.The expansion would require the use of land the firm purchased three years ago at a cost of $142,000 that is currently valued at $137,500.The expansion could use some equipment that is currently sitting idle if $6,700 of modifications were made to it.The equipment originally cost $139,500 six years ago,has a current book value of $24,700,and a current market value of $39,000.Other capital purchases costing $780,000 will also be required.What is the amount of the initial cash outflow for this expansion project?

• A)$953,400
• B)$962,300
• C)$948,900
• D)$927,800
• E)$963,200

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Definitions:

Alkalines

Substances having a pH greater than 7, often referred to as bases, and can neutralize acids.

Contact

The act of communication or interaction with someone, or the physical touching of an object or surface.

Inhalation

The action of breathing in; it's a route through which various substances, including medications, can enter the body.