Thomson Media Is Considering Some New Equipment Whose Data Are

question 21

Multiple Choice

Thomson Media is considering some new equipment whose data are shown below. The equipment has a 3-year tax life and would be fully depreciated by the straight-line method over 3 years, but it would have a positive pre-tax salvage value at the end of Year 3, when the project would be closed down. Also, some new working capital would be required, but it would be recovered at the end of the project's life. Revenues and other operating costs are expected to be constant over the project's 3-year life. What is the project's NPV?

• A) $20,762
• B) $21,854
• C) $23,005
• D) $24,155
• E) $25,363

---

Definitions:

Productivity

The effectiveness and efficiency with which individuals or organizations achieve their goals, often measured in terms of output over time.

Hallucinations

Perceptions of objects, sounds, or sensations with no external source, often occurring in psychiatric conditions.

Perceptual Illusions

Misinterpretations or distortions of a real sensory stimulus, often highlighting how the brain organizes and interprets sensory information.

Psychological Disorder

A condition characterized by abnormal thoughts, feelings, or behaviors that may cause distress or hinder normal functioning.