The Following Information Pertains to an Investment Ignoring Income Taxes, the Present Value of the Salvage Value

question 34

Multiple Choice

The following information pertains to an investment: $$\begin{array} { l r } \text { Investment } & \$ 240,000 \\\text { Annual revenues } & \$ 140,000 \\\text { Annual variable costs } & \$ 30,000 \\\text { Annual fixed out-of-pocket costs } & \$ 22,000 \\\text { Salvage value } & \$ 54,000 \\\text { Discount rate } & 16 \% \\\text { Expected life of project } & 3 \text { years }\end{array}$$ Ignoring income taxes, the present value of the salvage value (rounded) is

• A)$31,346.
• B)$34,614.
• C)$35,500.
• D)$46,440.

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Definitions:

Salt

Compound that releases ions other than H+ and OH– when it dissolves in water.

Environments

The surroundings or conditions in which a person, animal, or plant lives or operates, including natural, built, and social contexts.

Lysogenic Pathway

Bacteriophage replication path in which viral DNA becomes integrated into the host’s chromosome and is passed to the host’s descendants.

Lytic Pathway

Bacteriophage replication pathway in which a virus immediately replicates in its host and kills it.