Question

Which of the following purchases would be considered capital investments?
a. Land for the new administrative offices will cost $250,000.
b. Salary costs for the upcoming year are projected to be $2,000,000.
c. The cost of electricity and other utilities for the manufacturing facility is approximately $575.000 per year.
d. The construction and installation of special-use machinery to produce a new model of washer is projected to cost $450,000.
e. The new advertising campaign for the first quarter of the upcoming year will cost $175,000.
f. Twelve new cars are purchased for a total of $300,000 to expand the fleet of cars used by the salespeople.
g. New self-scan registers are purchased for all store locations at a total cost of $700,000.
h. A new network system throughout corporate headquarters will be installed for a cost of $200,000.
i. The cost of paper and toner for the company printers is projected to be $150,000 for the upcoming year.
j. The purchase cost plus installation for a second extrusion machine in a plastics recycling firm will be $500,000.


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  • CreatedApril 30, 2015
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