Timco is considering the purchase of a new machine. the machine costs 34,000. it will cost 5000 to modify and install it. we will need to spend 4000 on net working capital. we also just spent 2000 on a new sign for our office building. find the year zero cash flow for the machine

year zero cash flow             38,000

Explanation:

the year zero cash flow will consider all the necessary cost to get the machine and the project associated with it ready for use:

machine cost:                       34,000

increase in working capital   4,000

year zero cash flow             38,000

the new sign in the office building is not a cost related to the project. It is not revelant therefore, we ignore it.

cognitive overload: having a lot on your mind impairs decision-making and tends to result in the simplest, but not necessarily best, option being selected.

empathy gaps: overlooking how you might feel in a different situation can result in unnecessary purchases, such as overbuying when shopping for food on an empty stomach.

optimism and overconfidence: wearing rose-tinted glasses and having unrealistic expectations about the future can affect money management and leave you unprepared for a change in circumstance.

instant gratification: seeking instant gratification drives impulsive spending and can undermine long-term planning and savings.

harmful habits: automatic or mindless behaviour can amplify a poor financial decision as it becomes a recurring event.

social norms: we are heavily influenced by the actions of others; while this can be in certain circumstances, it also contributes to the pressure to keep up with the joneses through conspicuous consumption.

answer; ///i believe that the correct answer is (a) it is the means by which a person earns money;