Rossiter Restaurants Is Analyzing a Project That Requires $180,000 of Fixed

question 44

Multiple Choice

Rossiter Restaurants is analyzing a project that requires $180,000 of fixed assets. When the project ends, those assets are expected to have an aftertax salvage value of $45,000. How is the $45,000 salvage value handled when computing the net present value of the project? 

• A) Reduction in the cash outflow at Time 0 
• B) Cash inflow in the final year of the project 
• C) Cash inflow for the year following the final year of the project
• D) Cash inflow prorated over the life of the project 
• E) Excluded from the net present value calculation

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A measure of the likelihood of a specific event or outcome occurring, expressed as a ratio between 0 and 1.

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A state characterized by persistent feelings of sadness, hopelessness, and a lack of interest or pleasure in activities.

Probability

A measure of the likelihood of occurrence of a particular event or outcome, expressed as a number between 0 and 1.

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The act of expressing happiness, pleasure, or friendliness through a facial expression that typically raises the corners of the mouth.