Given the Following Information and Assuming a 20% CCA Class

question 126

Multiple Choice

Given the following information and assuming a 20% CCA class, what is the NPV for this project? Initial investment in fixed assets = $800,000; initial investment in net working capital = $200,000; life = four years; after-tax cost savings = $250,000 per year; salvage value = $30,000; tax rate = 35%; discount rate = 16%.

• A) $95,101
• B) $105,967
• C) $147,261
• D) $187,098
• E) $418,198

---

Definitions:

Unfair Labor Practices

Conduct by unions or employers that infringes upon employees' rights or breaches labor legislation.

Railway Labor Act

A U.S. law enacted in 1926 that seeks to avoid any interruption to commerce or to the operation of any carrier, facilitating labor relations in the railway and airline industries.

Trucking Industry

A sector encompassing businesses that provide transportation of goods by road, including both long-haul and local deliveries.

Clayton Act

An antitrust law enacted in the U.S. to promote fair competition and prevent monopolies, with provisions protecting labor unions and their activities.