You Are Evaluating a Project for Your Company

question 81

Multiple Choice

You are evaluating a project for your company. You estimate the sales price to be $500 per unit and sales volume to be 2000 units in year 1; 3000 units in year 2; and 1500 units in year 3. The project has a three-year life. Variable costs amount to $300 per unit and fixed costs are $200,000 per year. The project requires an initial investment of $325,000 in assets that will be depreciated straight-line to zero over the three-year project life. The actual market value of these assets at the end of year 3 is expected to be $50,000. NWC requirements at the beginning of each year will be approximately 25 percent of the projected sales during the coming year. The tax rate is 21 percent and the required return on the project is 12 percent. What is the operating cash flow for the project in year 2?

• A) $74,167
• B) $192,500
• C) $338,750
• D) $374,500

Recognize the terms and concepts related to the body's structural position, movements, and responses.

Understand how anatomy studies contribute to medical and physiological research.

Learn about the processes of growth, development, and metabolism in living organisms.

Understand the concepts of homeostasis and negative feedback mechanisms in the body.

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Definitions:

Deindividuation

A psychological state where an individual loses their sense of self-awareness and individuality, often resulting in uninhibited and sometimes antisocial behavior.

Preservation Of Innovation

Preservation of innovation refers to the efforts and methods used to maintain, protect, and sustain innovative practices, ideas, or technologies over time.

Survival Value

The degree to which a particular trait or behavior enhances the likelihood of survival and reproduction of an organism.

Culture

The shared attitudes, values, goals, and practices that characterize an institution, organization, or group.