The owners of a chain of fast-food restaurants spend $25 million installing donut makers in all their restaurants. this is expected to increase cash flows by $11 million per year for the next four years. if the discount rate is 5.3%, were the owners correct in making the decision to install donut makers?

Regarding the flow of costs through the inventory accounts, which of the following statements is incorrect? a. the costs flow from raw materials inventory to work-in-process inventory to finished goods inventory. b. the format for computing the amount used, manufactured, or sold is the same for all three inventory accounts. c. the final amount at each stage is added at the beginning of the next stage. d. purchases of raw material and freight in are debited to the work-in-process inventory account.