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Answer the Following Questions Using the Information Below:
Flowers for Everyone

question 132

Multiple Choice

Answer the following questions using the information below:
Flowers For Everyone is considering replacing its existing delivery van with a new one.The new van can offer considerable savings in operating costs.Information about the existing van and the new van follow:
 Existing van  New van  Original cost $100000$180000 Antual operating cost $33000$20000 Accumulated depreciation $60000 Current salvage value of the existing van $45000 Remaining life 10 years 10 years  Salvage value in 10 years $0$0 Antual depreciation $4000$18000\begin{array} { l r r } & \text { Existing van } & \text { New van } \\\text { Original cost } & \$ 100000 & \$ 180000 \\\text { Antual operating cost } & \$ 33000 & \$ 20000 \\\text { Accumulated depreciation } & \$ 60000 & - \\\text { Current salvage value of the existing van } & \$ 45000 & - \\\text { Remaining life } & 10 \text { years } & 10 \text { years } \\\text { Salvage value in 10 years } & \$ 0 & \$ 0 \\\text { Antual depreciation } & \$ 4000 & \$ 18000\end{array}
-'Sunk costs' include:

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Definitions:

Annual Revenues

The total amount of income generated by a business, government, or organization from its activities over the course of a year before any costs or expenses are deducted.

Budget Deficits

A situation where a government's expenditures exceed its revenues, resulting in the need to borrow money.

Great Depression

A severe worldwide economic downturn that lasted throughout the 1930s, marked by widespread unemployment, deflation, and a significant drop in global trade and output.

Annually Balancing

The process of adjusting or reconciling financial accounts or budgets to match or balance over a one-year period.

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