Sylvester Media Is Analyzing an Average-Risk Project, and the Following

question 39

Multiple Choice

Sylvester Media is analyzing an average-risk project, and the following data have been developed.Unit sales will be constant, but the sales price should increase with inflation.Fixed costs will also be constant, but variable costs should rise with inflation.The project should last for 3 years, it will be depreciated on a straight-line basis, and there will be no salvage value.This is just one of many projects for the firm, so any losses can be used to offset gains on other firm projects.The marketing manager does not think it is necessary to adjust for inflation since both the sales price and the variable costs will rise at the same rate, but the CFO thinks an adjustment is required.What is the difference in the expected NPV if the inflation adjustment is made vs.if it is not made? $\begin{array}{lr}\text { Project cost of capital ( } \mathrm{r} \text { ) } & 10.0 \% \\\text { Net investment cost (depreciable basis) } & \$ 200,000 \\\text { Units sold } & 50,000 \\\text { Average price per unit, Year } 1 & \$ 25.00\\\text { Fixed op cost excl. deprec. (constant) } & \$ 150,000 \\\text { Variable op. cost }{ }^{\prime} \text { unit, Year } 1 & \$ 20.20 \\\text { Annual depreciation rate } & 33.333 \% \\\text { Expected inflation } & 4.00 \% \\\text { Tax rate } & 25.0 \%\end{array}$

• A) $15,330
• B) $16,136
• C) $16,986
• D) $17,835
• E) $18,727

Appreciate the nuances of addressing behavioral change in different demographics, including older adults and adolescents.

Delineate between various concepts within the MI framework, such as rolling with resistance and evoking.

Understand various pharmacotherapy options for withdrawal symptom management across different substances.

Comprehend the Quadrants of Care Model and its application to psychiatric and substance use disorders (SUDs).

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Definitions:

Organizational Behavior

The study of how individuals and groups interact within organizations and the impact of these behaviors on performance and structure.

Representation

The action of speaking or acting on behalf of someone or the state of being so represented.

Leadership

The ability to influence, motivate, and enable others to contribute toward the effectiveness and success of the organizations of which they are members.

Coordination

The process of organizing people or groups so that they work together properly and well.