A Project Requires an Initial Investment of $200,000 and Expects

question 36

Multiple Choice

A project requires an initial investment of $200,000 and expects to produce a cash flow before taxes of $120,000 per year for two years . The corporate tax rate is 21 percent. The assets will depreciate using the MACRS 3-year schedule: (t = 1, 33%) ; (t = 2: 45%) ; (t = 3: 15%) ; (t = 4: 7%) . The company's tax situation is such that it can use all applicable tax shields. The opportunity cost of capital is 12 percent. Assume that the asset can sell for book value at the end of the project. Calculate the NPV of the project (approximately) .

• A)$22,463
• B)$19,315
• C)$22,735
• D)$5,721

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The first occurrence of menstruation in a female, signifying the onset of reproductive capability.

Amenorrhea

The absence of menstruation in a woman of reproductive age, which can be a symptom of various health conditions.

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The phase in a woman's menstrual cycle during which bleeding from the uterus occurs through the vagina, marking the shedding of the uterine lining.

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Tiny cavities in the skin or organs, such as the ovary, where eggs develop.