Judson Industries Is Considering a New Project

question 149

Multiple Choice

Judson Industries is considering a new project. The project will initially require $749,000 for new fixed assets, $238,000 for additional inventory, and $25,000 for additional accounts receivable. Accounts payable is expected to increase by $70,001. The fixed assets will belong in a 30% CCA class. At the end of the project, in four years' time, the fixed assets can be sold for 40% of their original cost. The net working capital will return to its original level at the end of the project. The project is expected to generate annual sales of $944,000 with related cash expenses of $620,000. The tax rate is 35% and the required rate of return is 14%.

What is the amount of the earnings before interest and taxes for the first year of this project?

• A) -$425,000
• B) -$276
• C) $32,900
• D) $113,400
• E) $211,650

Examine the economic arguments for and against free trade and protectionism.

Recognize the role of exchange rates and the balance of trade in international economics.

Appreciate the historical and current perspectives on trade policies and their economic consequences.

Evaluate the effects of trade policies on consumer prices and market competition.

---

Definitions:

Notes Page

A feature in presentation software allowing users to create notes accompanying each slide, intended primarily for the presenter's reference.

Unbold Button

A tool in text editors used to remove bold formatting from selected text, returning it to its normal weight.

Bold

A text formatting feature that makes letters and words darker and more prominent than surrounding text.

Home Tab

The primary or first tab in many software applications, often containing the most commonly used functions and tools.