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:

Systematic Desensitization

A behavioral therapy method used to gradually reduce phobia or anxiety through controlled exposure to the feared object or situation in conjunction with relaxation techniques.

Fear Reduction

A psychological process or intervention aimed at decreasing the intensity of fear reactions, often through techniques such as exposure therapy or cognitive restructuring.

Orienting Reflex

An unlearned response in which an organism attends to a stimulus.

Unlearned Response

A natural, instinctive reaction that does not require prior learning or experience to occur.