The Corner Shop Is Considering a New Four-Year Expansion Project

question 17

Multiple Choice

The Corner Shop is considering a new four-year expansion project that requires an initial fixed asset investment of $210,000.The fixed asset will be depreciated straight-line to zero over its four-year life, after which time it will be worthless.The project is estimated to generate $48,000 in annual sales, with costs of $31,000.If the tax rate is 34 percent, what is the OCF for this project?

• A)$29,070
• B)$63,270
• C)$69,250
• D)$17,850
• E)$29,640

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Definitions:

Empirical Approach

A method of inquiry that relies on observation, experimentation, and evidence rather than theory alone.

Behavior Therapists

Professionals who specialize in therapy that focuses on changing negative behaviors into positive ones through conditioning and other behavioral techniques.

Therapeutic Relationship

The professional and collaborative relationship between a therapist and client, which is crucial for effective therapy.

Research Design

A detailed plan or strategy outlining how a study is to be conducted, including methodologies for collecting and analyzing data.