What is the initial cost of the new machine required for hoophouse production?

Question

BlackTom AI · Accepted Answer

The initial capital outlay for the new hoophouse production machine is the machine’s purchase price: C100,000.

1) Relevant knowledge points and concepts
- "Initial cost" (capital expenditure) normally refers to the upfront purchase price of an asset, plus any directly attributable costs required to bring it into service (shipping, installation, taxes). If the problem statement lists a machine cost as the purchase price without additional add-ons, that listed price is the initial cost used in analyses such as payback, NPV, or depreciation schedules.

2) Step-by-step reasoning
- Identify the listed purchase price for the new machine in the problem data. The machine’s stated cost is C100,000.
- Check whether the problem indicates any extra start-up expenses (installation, shipping, taxes). No additional start-up costs are specified.
- Therefore the total initial capital outlay equals the stated purchase price alone.

3) Calculations and intermediate steps
- Base purchase price = C100,000
- Shipping/installation/taxes = C0 (not provided or specified)
- Total initial cost = C100,000 + C0 = C100,000

4) Why the correct answer is correct
- Because the question asks specifically for the initial cost of the new machine and the provided data gives a single purchase price of C100,000 with no extra startup costs, that purchase price is the initial cost to be used in any capital budgeting or costing analysis.

5) Why the other options are incorrect
- C60,000, C40,000, and C80,000 are lower amounts that do not match the stated machine purchase price. They might represent alternative quotes or partial costs, but none match the given, authoritative initial purchase cost of C100,000.

6) Conclusion
- The correct initial cost is C100,000, which matches the provided answer.

What is the initial cost of the new machine required for hoophouse production?单项选择题

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