Poulsen Industries Is Analyzing an Average-Risk Project,and the Following Data

question 1

Multiple Choice

Poulsen Industries 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.No change in net operating working capital would be required.This is just one of many projects for the firm,so any losses on this project 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 inflation adjustment is required.What is the difference in the expected NPV if the inflation adjustment is made versus if it is not made? Do not round the intermediate calculations and round the final answer to the nearest whole number. $\begin{array}{lr}\text { WACC } & 10.0 \% \\\text { Net investment cost (depreciable basis) } & \$ 201,400 \\\text { Units sold } & 48,200 \\\text { Average price per unit, Year } 1 & \$ 28.50 \\\text { Fixed op. cost excl. depr. (constant) } & \$ 153,000 \\\text { Variable op. costiunit, Year } 1 & \$ 20.40 \\\text { Annual depreciation rate } & 33.333 \% \\\text { Expected inflation } & 4.00 \% \\\text { Tax rate } & 40.0 \%\end{array}$
?

• A) $461,378
• B) $433,696
• C) $456,765
• D) $410,627
• E) $373,717

Comprehend the ideologies and systemic structures of social discrimination and inequality, such as apartheid.

Recognize the formation of social groups based on gender, age, and social rank.

Familiarize with the efforts to abolish systemic social inequalities, such as the caste system.

Analyze the degree and factors affecting social mobility within societies.

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Intimate

Characterized by a close, personal, and private relationship or interaction between individuals.

Social

Relating to society or its organization, emphasizing the interaction and relationships of individuals within a community.

Nonverbal Behavior

Communication expressed through body movements, facial expressions, gestures, and posture, rather than words.

Intentions

Plans or aims that one intends to carry out.