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Mauldin Welding Shop Is Considering the Purchase of New High-Tech

Question 117

Multiple Choice

Mauldin Welding Shop is considering the purchase of new high-tech welding equipment.If the equipment is purchased, Mauldin will incur $2,000 to install the equipment and pay a technician to adjust the computer settings.In determining the cash flows associated with the new equipment, the $2,000 is


A) a cash outflow.
B) a cash inflow.
C) an opportunity cost.
D) not relevant.

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