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(The following information will be used for Questions 1, 2, and 3.) Flowers For Everyone is considering replacing its existing delivery van with a new
(The following information will be used for Questions 1, 2, and 3.) Flowers For Everyone is considering replacing its existing delivery van with a new one. The new van will cost $180,000, but can offer considerable savings in operating costs. Information about the existing van and the new van follow: Which of the following is a sunk cost? The purchase price of the existing van The purchase price of the new van The market value of the existing van The annual operating cost of the new van (The following information will be used for Questions 1, 2, and 3.) Flowers For Everyone is considering replacing its existing delivery van with a new one. The new van will cost $180,000, but can offer considerable savings in operating costs. Information about the existing van and the new van follow: Which of the following is a relevant cost? the original cost of the existing van accumulated depreciation the current market value of the existing van the salvage value in 10 years (The following information will be used for Questions 1,2 , and 3.) Flowers For Everyone is considering replacing its existing delivery van with a new one. The new van will cost $180,000, but can offer considerable savings in operating costs. Information about the existing van and the new van follow: If Flowers For Everyone replaces the existing delivery van with the new one, what will the effect on total income be over the next 10 years? (Ignore taxes and the time value of money. Enter an increase in profits as a positive number and a decrease in profits as a negative number.)
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