Answer the following problem No. P11-1 based on Class text book-. Principles of Managerial Finance (14 ed. International Edition) by Gitman & Zutter.

Chapter 11- Captial Budgeting Cash Flows, Problem No. P11-1, Page 456

Classification of expenditures Given the following list of outlays indicate whether each is normally considered a capital expenditure or an operating expenditure.

Explain your answers.

a. An Initial lease payment of $5,000 for electronic point-of-sale cash register systems.

b. An outlay of $20,000 to purchase patent rights from an inventor.

c. An outlay of $80,000 for a major research and development program.

d. An $80,000 investment in a portfolio of marketable securities.

e. A $300 outlay for an office machine.

f. An outlay of $2,000 for a new machine tool.

g. An outlay of $240,000 for a new building.

h. An outlay of $1,000 for a marketing research report.