3 Multiple choice questions, Thanks! (11-13)

A cost that cannot be avoided or changed because it arises from a past decision, and is irrelevant to future decisions, is called a(n): Multiple Choice Sunk cost O Opportunity cost Uncontrollable cost Incremental cost Out-of-pocket cost. Chang industries has 1,500 defective units of product that have already cost $13.50 each to produce. A salvage company will purchase the defective units as they are for $450 each. Chang's production manager reports that the defects can be corrected for $650 per unit, enabling them to be sold at their regular market price of $2000 The incremental income or loss on reworking the units is Multiple Choice $13.500 o $23.250 income $13,500 income 520.250 income $9750 loss A company is considering the purchase of new equipment for 545,000. The projected annual net cash flows are $19.000. The machine has a useful te of 3 years and no salvage Value Management of the company requires a 125 return on investment. The present value of an annuity of $1 for various periods follows: Period Present value of an annuity of $1 at 12% 0.8929 2 1.6901 2.4018 3 What is the net present value of this machine assuming all cash flows occur at year-end? Multiple Choice $19000 3654 $3.000 $45 634 o O 51760