The process used by Terry is known as Discounting.
<h3><u>
What is Discounting?</u></h3>
- A value obtained in the future is converted to an equivalent value received right away through the process of discounting.
- Discounting takes into account the relative value of a dollar received now against one received in 50 years, for instance.
- By converting future dollars into current dollars, the discounting process allows for the conversion of units of value over a range of time periods.
- Decision-makers utilize discounting to fully comprehend the costs and benefits of policies that have long-term effects.
Discounting is a method for calculating the gap between current and future values.
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The after-tax cash flow associated with the sale of equipment is $299,325.
<h3>
What is an initial cost?</h3>
- The initial cost is the typical cost of buying or producing the goods you have on hand.
<h3>
What is an operating cost?</h3>
- Operating costs, often known as operating costs, are the costs associated with running a company, or with running a machine, part, piece of equipment, or facility.
- They represent the cost of the resources an organization uses just to stay in business.
<h3>What is cash flow?</h3>
- The actual or fictitious movement of money is known as cash flow.
- In finance and accounting, cash flow describes the capital inflows and outflows of particular economic units with the aim of achieving a particular goal within a predetermined window of time.
- Making an accurate prediction of future cash flows is required in accounting in addition to measuring current cash flows.
<h3>Solution -</h3>
Revenue of 5 years 
.
Operating cost of 5 years 
.
Sale of equipment 
.
Net profit = 
.
Tax to be deducted at 25% 
.
Cash flow after tax 
.
Therefore, the after-tax cash flow associated with the sale of equipment is $299,325.
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If the bank notifies the company of a deposited customer check that was returned NSF, the company would have to Debit Accounts Receivable and Credit cash.
<h3>What happens when a check is returned NSF?</h3>
This means that the check did not clear and so the depositor still owes the company the amount they had written on the check.
The company would then have to debit Receivables to show that the person still owes them, and credit cash to show the cash never reported.
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ANSWERS: There was a format called Company Town where the company would virtually own and control the entire town including daily need item stores. Workers were lured with attractive wages and accommodation. But, the wages were paid in 'Scrips' which were company printed currency meant to be spent in the stores owned by the company owned and controlled stores inside the company town. This led to the employees getting dependent on employers and their personal freedom and space getting interfered by employers. This relation led to the term 'Wage Slavery'. This practice was continued in mining town till 1960s whereas the concept of company town ended in the 1920s.
