A Project Under Consideration by Hilton Corporation Would Require a Working

question 78

Multiple Choice

A project under consideration by Hilton Corporation would require a working capital investment of $200,000.The working capital would be liquidated at the end of the project's 10-year life.If Hilton Corporation has an after-tax cost of capital of 10 percent and a marginal tax rate of 30 percent,what is the present value of the working capital cash flow expected to be received in year 10? Present value tables or a financial calculator are required.

• A)$36,868
• B)$77,100
• C)$53,970
• D)$23,130

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Definitions:

Ruling Passion

A dominant interest or driving force that significantly influences a person's decisions and actions throughout their life.

Common Traits

Traits possessed in some degree by all persons.

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The shared values, traditions, norms, customs, arts, history, folklore, and institutions of a group of people that are passed through generations.

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Unintentional errors in speech or memory believed to reveal subconscious thoughts or desires, according to Freudian psychoanalytic theory.