Suppose a private company invests $100 million into a factory to increase their productive capacity and improve its competitiveness. The useful life of the factory is 20 years. Suppose that the company's revenues were $600 million and its non-investment expenses were $250 million in the year the investment was made . Calculate the company's surplus/deficit for the year using the "cash-basis" accounting method. (You must provide the calculations for full credit)

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In cashbasis accounting the investment in the factory is considered a capital expenditure ... View the full answer