Categorize each cash flow. Purchase of a new control system. V [ Choose ] Disposal cost Operation and maintenance cost Site cleanup after closing a chemical processing plant. Investment cost Revenue Electricity needed to operate machines. [ Choose ] Product sales [ Choose ]
Categorize each cash flow. Purchase of a new control system. V [ Choose ] Disposal cost Operation and maintenance cost Site cleanup after closing a chemical processing plant. Investment cost Revenue Electricity needed to operate machines. [ Choose ] Product sales [ Choose ]
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question

Transcribed Image Text:**Categorize Each Cash Flow**
In this interactive exercise, you are required to categorize different types of cash flows from a given list. This is a key skill in financial analysis and accounting.
1. **Purchase of a new control system.**
- Options to categorize:
- Disposal cost
- Operation and maintenance cost
- Investment cost
- Revenue
2. **Site cleanup after closing a chemical processing plant.**
- Options to categorize:
- Disposal cost
- Operation and maintenance cost
- Investment cost
- Revenue
3. **Electricity needed to operate machines.**
- Options to categorize:
- Disposal cost
- Operation and maintenance cost
- Investment cost
- Revenue
4. **Product sales.**
- Options to categorize:
- Disposal cost
- Operation and maintenance cost
- Investment cost
- Revenue
Each cash flow line item includes a dropdown menu, allowing you to assign the appropriate category. This exercise enhances your ability to determine the nature of various business expenditures and income sources.
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