Judson Industries Is Considering a New Project

question 352

Multiple Choice

Judson Industries is considering a new project. The project will initially require $749,000 for new fixed assets, $238,000 for additional inventory, and $25,000 for additional accounts receivable.
Accounts payable is expected to increase by $70,001. The fixed assets will belong in a 30% CCA
Class. At the end of the project, in four years' time, the fixed assets can be sold for 40% of their
Original cost. The net working capital will return to its original level at the end of the project. The
Project is expected to generate annual sales of $944,000 with related cash expenses of $620,000.
The tax rate is 35% and the required rate of return is 14%.
What is the amount of the earnings before interest and taxes for the first year of this project?

• A) -$425,000
• B) -$276
• C) $32,900
• D) $113,400
• E) $211,650

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The concept or legal principle concerning the separation of religious institutions and government entities, aiming to prevent any single religion from dominating public policy or government functions.

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Areas of land within the United States that are reserved for Native American tribes and are recognized as such by the federal government.

Massachusetts Bay Colonists

The settlers of the Massachusetts Bay Colony, an English settlement on the east coast of North America in the 17th century.

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Indigenous peoples living in the region known as New England, in the northeastern United States, prior to and during European colonization.