Ausel's Is Considering a Five-Year Project That Will Require $738,000

question 69

Multiple Choice

Ausel's is considering a five-year project that will require $738,000 for new fixed assets that will be depreciated straight-line to a zero book value over five years. No bonus depreciation will be taken. At the end of the project, the fixed assets can be sold for 18 percent of their original cost. The project is expected to generate annual sales of $679,000 with costs of $321,000. The tax rate is 22 percent and the required rate of return is 15.2 percent. What is the amount of the aftertax salvage value?

• A) $105,165.60
• B) $103,615.20
• C) $104,409.20
• D) $132,840.00
• E) $118,406.90

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Definitions:

Judith Butler

A philosopher and gender theorist whose work has influenced feminist theory, queer theory, political philosophy, and ethics, best known for her theory of gender performativity.

Post-Structuralist Perspective

A critical approach in humanities and social sciences that challenges the idea of fixed structures, identities, and meanings, emphasizing diversity and difference.

Sociological Understanding

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Gender

The range of characteristics pertaining to, and differentiating between, masculinity and femininity, as socially constructed and culturally associated with the biological differences between males and females.