Shanghai Shipping Is Considering Investing in a Project That Requires

question 68

Multiple Choice

Shanghai Shipping is considering investing in a project that requires an after-tax initial investment of 156 million and is expected to produce after-tax cash inflows of $40 million for each of the next five years. The firm's cost of capital is 8%. Based on this information, the NPV of the project is _________ million and the firm should _________ the project.

• A) $3.7; accept
• B) -$3.7, reject
• C) $159.37, accept
• D) -$159.37, reject

Recognize the necessity of a formal tone in specific business documents, while also understanding exceptions.

Understand the structure and components of long reports, including executive summaries and their purposes.

Grasp the protocols for follow-up actions in business reports to ensure accountability and clarity on next steps.

Understand the structural components of a report and their significance.

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Definitions:

Perceived Inequity

The feeling of being unfairly treated when comparing one's own effort-reward ratio to the effort-reward ratio of others.

Equity of Fairness

A principle of justice that emphasizes fair treatment and equal opportunities for all individuals.

Work Ethic

The principle that hard work is intrinsically virtuous or worthy, often reflected in a person's attitudes toward their job.

Goal-Setting Theory

A motivational theory that emphasizes the significance of setting specific, measurable, achievable, relevant, and time-bound goals to improve performance.