The Tattle Teller has a printing press sitting idly in its back room. The press has no market value to another printer because the machine utilizes old technology. The firm could get $250 for the press as scrap metal. The press is six years old and originally cost $148,000. The current book value is $2,570. The president of the firm is considering a new project and feels he can use this press for that project. What value, if any, should be assigned to the press as an initial cost of the new project? a) $0
b) $250
c) $2,245
d) $2,570
e) $2,495

b) $250

Explanation:

Based on the information given the value, if any, that should be assigned to the press as an INITIAL COST of the new project will be the amount of $250 which represent the amount that we were told the firm could get for the press as scrap metal reason been that the machine tend to utilizes old technology.

Therefore The amount that should be assigned to the press as an initial cost of the new project is $250

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1) the stages a new product goes through from beginning to end, i.e., the stages that a product passes through from introduction through growth, maturity, and decline. 2) the time from initial research and development to the time at which sales and support of the product to customers are withdrawn. 3) the period of time during which a product can be produced and marketed profitably.

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