The Whilst Co

question 362

Multiple Choice

The Whilst Co. is analyzing a project that has projected sales of $189,400 and costs of $102,301. The project requires an investment in inventory of $15,000 plus another $28,000 in accounts
Receivable. Fixed assets of $80,000 are needed and belong in a 30% CCA class. Accounts payable
Will increase by $36,001. An interest expense of $11,000 will be incurred annually. The project has a
Life of 3 years. At the end of the three years, the equipment has an estimated market value of
$26,001. The company requires a 14% rate of return and is in the 34% marginal tax bracket. What is
The net present value of this project?

• A) $65,887
• B) $68,023
• C) $81,921
• D) $91,425
• E) $93,608

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Definitions:

Anorexia Nervosa

An eating disorder characterized by an abnormally low body weight, intense fear of gaining weight, and a distorted perception of body weight.

Cognitive-Behavioral

A form of psychotherapy that focuses on changing patterns of thinking or behavior in order to solve problems and reduce symptoms of mental illness.

Maudsley Model

A family-based treatment for anorexia nervosa where parents play an active and positive role in helping their child to overcome the disorder.

Family Therapy

A form of psychotherapy that aims to address psychological problems by involving all family members in the therapy process.