Question 22 1 pts A company purchases a fleet of 10 electric cars for its staff. These cars cost $300,000 If the company did not purchase these cars, it could have used the same amount of cash (i.e.. $300,000) to purchase new machines, which are expected to have a value in $320,000 in today's dollars (based on the present value of expected future cash flows from the new machines). Alternatively, it could have used the $300,000 to upgrade its IT systems which is expected to have a value of $305,000 in today's dollars (based on the present value of expected future cash flows from the new systems) Which of the following is the best estimate of the opportunity cost of purchasing the fleet of electric cars to the company? $300,000 $320,000 $620,000 $625,000 $305,000 The Artificial Intelligence Company (AIC) provides artificial intelligence (AI) related services to its clients in the manufacturing industry. It has an office in the outskirts of Melbourne which is used by its administrative staff (e.g., human resource executives, accountant, personal assistants to senior executives). Most of its employees (e.g., data analytics and engineering professionals) work from client sites or from home. Consider the following statements about direct and indirect costs of AIC. Which of the following are true? The cost object of interest is each client project that AIC works on 1. A cost item that would likely be a direct cost is the wages of data analytics and engineering professionals employed by AIC. These professionals work on a single client project at a time. 2. A cost item that would likely be an indirect cost is AIC's office rent. 3. An example of an allocation base that could be used appropriately to allocate some of AIC's indirect cost to each client project is AIC's office space size (in square metres). Statement 1 only Statement 2 only Statement 3 only Statements 1 and 2 only Statements 1.2 and 3