Save-A-Lot Is a Grocery Store Chain A)$14,153
B)$14,250
C)$14,382
D)$14,456
E)$14,577

question 69

Multiple Choice

Save-a-lot is a grocery store chain. Save-a-lot is forecasting its financial statements for Year 3. Selected financial information for Years 2 and 3 is provided in the table. In Year 3 Save-a-lot is planning to invest $600 million in CAPEX and forecasted depreciation is $903 million. What is Net PP&E (Property, Plant and Equipment) at the end of Year 3? Selected Financial Information
Save-a-lot Inc.
Dec 31, Year 2 and Year 3 ($ millions)
$$\begin{array} { | c | c | c | } \hline & \text { Year 2 } & \text { Year 3 } \\\hline \text { PP\&E } & \$ 14,456 & \\\hline \text { Depreciation } & 923 & 903 \\\hline \text { CAPEX } & 1,329 & 600 \\\hline\end{array}$$

• A)$14,153
• B)$14,250
• C)$14,382
• D)$14,456
• E)$14,577

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Definitions:

Reasonable Cost

A standard in pricing or expenditure that is fair, proper, and not excessive under the circumstances.

Exculpatory Clause

A provision in a contract that absolves one party from liability for their own negligence or wrongdoing.

Liability

Obligation or liability for one's actions or debts.

Tortious Conduct

Actions carried out by an individual or entity that cause harm or loss to another, leading to civil legal liability.