n the cash flow information for the Ping Kings project, Ping spent $300,000 for research and development of the golf clubs. Ping's tax rate is 40%. How much of this cost should be included in the initial (t = 0) cash flow for this project

The amount of the cost that should be included in the initial (t = 0) cash flow for Ping Kings' Project is D. $300,000.

This is a cash outlay (outflow).  It bears a negative value.  The initial cash flow cannot be $120,000, $180,000, or $0 because of Ping's tax rate of 40%. Under the FASB, Research and Development costs are capitalized.

Secondly, tax is not applied on capital investment but its net income.

Options for this question include:

A. $120,000

B. $180,000

C. $0

D. $300,000

Learn more: link

C. $0

Explanation:

When including initial costs in a project's cash-flow, the relevant costs are those that henceforth will be spent on the project. Sunk costs are not to be included because they have already been incurred and cannot be recovered.

Research and Development costs have already been incurred and so are sunk costs. Hence they are not to be included in the initial cash-flow for the project.

the answer is "b.the increased supply will create a surplus. "

the essential thought behind price controls is straightforward - utilize the power of law to modify the equilibrium of a market. for instance, the legislature may choose that the steel business needs to survive, and in this way pass a law to set a value floor on steel. this implies all steel sold must offer at or over the floor value, which must be set over the equilibrium cost for it to have any impact. the switch could likewise happen - the administration can choose that steel is excessively costly and set a value roof underneath its equilibrium value, with the goal that all steel must be sold at or beneath that ceiling.