The Manufacture of Folic Acid Is a Competitive Business

question 67

Multiple Choice

The manufacture of folic acid is a competitive business. A new plant costs $100,000 and lasts for three years. The cash flow from the plant is as follows: Year-1: +43,300, Year-2:
$43,300 and Year-3 = 58,300. (Assume there is no tax.) If the discount rate is 20%, what is the value of the plant at the end of year-1?

• A) $76,569
• B) -23,400
• C) 48,600
• D) None of the above

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Definitions:

Job Stress

The emotional and physical strain caused by one's work environment and duties, potentially leading to negative health outcomes.

Smoking Behavior

The actions or patterns of tobacco use, including the frequency and reasons behind smoking.

Intimate Relationships

Close personal associations that involve deep emotional connections, affection, and trust, including friends, family, and romantic partners.

Job Performance

The degree to which an employee accomplishes the tasks and responsibilities outlined in their job description, affecting organizational productivity and goals.