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Levels Tought:
University
| Teaching Since: | Apr 2017 |
| Last Sign in: | 438 Weeks Ago, 2 Days Ago |
| Questions Answered: | 9562 |
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bachelor in business administration
Polytechnic State University Sanluis
Jan-2006 - Nov-2010
CPA
Polytechnic State University
Jan-2012 - Nov-2016
Professor
Harvard Square Academy (HS2)
Mar-2012 - Present
1. If Halley Industries reimburses employees who earn master's degrees and who agree to remain with the firm for an additional 3 years, should the expense of the tuition reimbursement be categorized as a capital expenditure or an operating expenditure?<?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" />
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2. Iridium Corp has spent $3.5 billion over the past decade developing a satellite based telecommunication system. It is currently trying to decide whether to spend an additional $350 million on the project. The firm expects that this outlay will finish the project and will generate cash flow of $15 million per year over the next 5 years. A competitor has offered $450 million for the satellites already in orbit. Classify the firm's outlay as sunk cost or opportunity costs, and specify the relevant cash flows.
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