Thomson Media Is Considering Some New Equipment Whose Data Are

question 69

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

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Definitions:

Ingroup Bias

The tendency to favor and extend loyalty to members of one's own group over others, often leading to prejudice and discrimination.

Prejudice and Discrimination

Prejudice and discrimination involve unfair treatment or negative attitudes towards individuals based on their membership in a particular group, often rooted in stereotypes.

Scapegoat Effect

Blaming a person or group for the wrongdoings, mistakes, or faults of others, often as a way of distracting from one's own failures.

Implicit Prejudice

Unconscious biases or attitudes toward people or associate stereotypes with them without conscious knowledge.