A Four-Year Project Requires an Initial Investment of $165,000 in fiXed

question 307

Multiple Choice

A four-year project requires an initial investment of $165,000 in fixed assets plus $25,000 in net working capital. The project has after-tax costs of $14,501. The assets belong in a 20% CCA class
And will have no salvage value. What is the project's equivalent annual cost if the required return is
14% and the firm's tax rate is 34%?

• A) $63,998
• B) $159,418
• C) $186,474
• D) $201,011
• E) $232,249

---

Definitions:

Persian Masters

Refers to skilled artists from Persian history, known for their contributions to art, architecture, and literature, prominently during the Islamic Golden Age.

Great Temple Madurai

A historic Hindu temple located in Madurai, Tamil Nadu, India, famous for its complex architecture and towering gopurams (gateway towers).

Decorative Program

A comprehensive plan or scheme for the decoration of an architectural interior, including the selection and arrangement of decorative elements.

Hindu Deities

The gods and goddesses worshipped in Hinduism, which include a vast pantheon of deities such as Vishnu, Shiva, and Durga.