Temple Corp ?
A) $25,831
B) $33,377
C) $34,828
D) $29,023
E)

question 47

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? Do not round the intermediate calculations and round the final answer to the nearest whole number.
? $$\begin{array} { l r } \text { Risk-adjusted WACC } & 10.0 \% \\\text { Net investment cost (depreciable basis) } & \$ 65,000 \\\text { Straight-line depr. rate } & 33.3333 \% \\\text { Sales revenues, each year } & \$ 71,500 \\\text { Annual operating costs (excl. depr.) } & \$ 25,000 \\\text { Tax rate } & 35.0 \%\end{array}$$
?

• A) $25,831
• B) $33,377
• C) $34,828
• D) $29,023
• E) $22,928

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Definitions:

Strategic Intent

The focus on and application of organizational energies on a unifying and compelling goal.

Unifying Target

A common goal set for a group or team to focus their efforts towards achieving together.

Stakeholders

The persons, groups, and other organizations that are directly affected by the behaviour of the organization and that hold a stake in its performance.

Strategic Accomplishments

Achievements that significantly contribute to the fulfillment of key goals or objectives within a strategic plan.