ABC Already Spent $85,000 on a Feasibility Study for a Machine

question 38

Multiple Choice

ABC already spent $85,000 on a feasibility study for a machine that will produce a new product. The machine will cost $2,575,000. Required modifications will cost $375,000. ABC will need to invest $75,000 for additional inventory. The machine has an IRS approved useful life of 7 years; it is presumed to have no salvage value. It will only be operated for 3 years, after which it will be sold for $600,000. What is the total investment amount required for the project?

• A) $3,025,000
• B) $2,950,000
• C) $2,575,000
• D) $2,350,000

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Definitions:

Multitasking

The act of performing multiple tasks simultaneously or switching rapidly between tasks, often leading to decreased efficiency and increased errors.

Standup Meetings

Short, often daily meetings where team members stand in order to keep the meeting brief, focusing on updates, progress checks, and identifying blockers.

Urgent Problems

Issues or situations that require immediate attention and action due to their critical nature.

Solve Small Issues

The act of addressing and rectifying minor problems or challenges before they escalate into larger concerns.