The Machinery Required for a Three Year Project Costs $20,000

question 287

Multiple Choice

The machinery required for a three year project costs $20,000, belongs in a 15% CCA class, and will require a net working capital investment of $5,000 up-front. The project generates after-tax operating income of $11,501. The fixed assets will be sold for $2,000 at the end of the project. If the firm has a tax rate of 34% and a required return of 10%, what is the project NPV?

• A) $10,724
• B) $11,033
• C) $12,446
• D) $13,426
• E) $15,942

Demonstrate knowledge of the ethics of training and development, including ethical guidelines.

Identify and provide solutions to delivery problems experienced by trainers.

Discuss the significance of the climate of learning and identify its constituent elements.

Apply ethical guidelines in designing and delivering a training program.

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Definitions:

Overhead Applied

The portion of overhead costs that are assigned to goods and services, typically based on a predetermined overhead rate.

Direct Labor

Direct Labor refers to the wages and benefits of employees who are directly involved in the production of goods, considered a variable cost.

Manufacturing Costs

The aggregate costs associated with the process of producing finished goods, including materials, labor, and overhead.

Direct Materials

Raw materials that are directly traceable to the production of finished goods.