Temple Corp

question 46

Multiple Choice

Temple Corp. is considering a new project whose data are shown below. The equipment that would be used has a 3-year tax life, would be depreciated by the straight-line method over its 3-year life, and would have a zero salvage value. No change in net operating working capital would be required. Revenues and other operating costs are expected to be constant over the project's 3-year life. What is the project's NPV?

• A) $15,740
• B) $16,569
• C) $17,441
• D) $18,359
• E) $19,325

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Definitions:

Financial Incentives

Monetary benefits used to motivate specific behaviors or actions among employees, customers, or other stakeholders, typically aiming at increasing sales, productivity, or engagement.

Customer Relationships

The interactions and engagements a company has with its customers, with the aim of improving loyalty and satisfaction.

Business Markets

Commercial sectors that involve transactions between businesses rather than between a business and a consumer.

Consumer Markets

markets consisting of individuals or households that purchase goods and services for personal consumption.