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classfication Problems All problems are available in My Financelab. 1-1 the p1 assification of expenditures Given the following list of expenditures, indi whether each is
classfication Problems All problems are available in My Financelab. 1-1 the p1 assification of expenditures Given the following list of expenditures, indi whether each is normally considered an operating expenditure or a capital e P11- 1 Cl ture. Explain your answers. a. An initial lease payment of $7,500 for renting the office building o. Anuay of $150,000 to purchase a trademark for manufacturing a nevw Kepair and maintenance expenses of $4,500 paid for the delivery truct A total of $2,300 paid for fuel for the company vehicles e. A cash outlay of $980,000 to acquire a new office building f. A cash outflow of $249,000 for a significant research and development g. Amount of $32,000 had been written off as bad debts and h. cannot be collected A $108,000 payment for major structural improvements to the office bu LOO LG2 P11-2 Relevant cash flow and timeline depiction For each of the following projects, detes mine the relevant cash flows, and depict the cash flows on a time line. a. A project that requires an initial investment of $120,000 and will generate an- nual operating cash inflows of $25,000 for the next 18 years. In each of the 18 years, maintenance of the project will require a $5,000 cash outflow
classfication
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