Use the Information Below to Answer the Following Question(s)

question 131

Multiple Choice

Use the information below to answer the following question(s) .Hawkeye Cleaners has been considering the purchase of an industrial dry-cleaning machine.The existing machine is operable for three more years and will have a zero disposal price.If the machine is disposed of now, it may be sold for $30,000.The new machine will cost $200,000, an additional cash investment in working capital of $60,000 will be required and will be returned at the end of the project.The machine is expected to last 3 years and has an estimated disposal value at that time of $20,000.The new machine will reduce the average amount of time required to wash clothing and will decrease labour costs.The investment is expected to net $50,000 in additional cash inflows during the year of acquisition and $150,000 each additional year of use.These cash flows will generally occur throughout the year and are recognized at the end of each year.Income taxes are not considered in this problem.
-Project ABC is under consideration.Annual cash flows equal $50,000 per year for 5 years.During the first three years the required rate of return is 2 percent.The required rate of return for cash flows in the final two years is 10 percent.What is the present value of cash inflows?

• A)$250,000
• B)$247,730
• C)$235,650
• D)$209,391
• E)$203,642

Determine the correct recording of transactions according to the cost principle.

Understand the impact of ethical lapses in financial reporting and identify factors contributing to such issues.

Differentiate between internal and external users of accounting information and the types of reports they utilize.

Distinguish between service, retail, and manufacturing businesses based on their operations.

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Definitions:

Cyberbullying

Involves the use of information and communication technologies such as the Internet, social networking sites, websites, email, text messaging, and instant messaging to intimidate or harass others (Royal Canadian Mounted Police, 2016).

Tokenism

The practice of including one or a small number of members of a minority group to create the appearance of representation, inclusion, and nondiscrimination, without ever giving these members access to power.

Equal Opportunity

A principle of fairness where individuals are treated without bias, irrespective of their background, race, or gender, especially in employment and education.

Administrative Assistants

Professionals responsible for managing office tasks, supporting staff, and facilitating internal communication to ensure organizational efficiency.