A Company Needs an Increase in Working Capital of $50,000

question 116

Multiple Choice

A company needs an increase in working capital of $50,000 in a project that will last 4 years. The company's tax rate is 30% and its after-tax discount rate is 8%.Click here to view Exhibit 14B-1 to determine the appropriate discount factor(s) using table.The present value of the release of the working capital at the end of the project is closest to:

• A) $36,750
• B) $15,000
• C) $25,726
• D) $35,000

---

Definitions:

Job Analysis Information

Data collected about a job, including responsibilities, work conditions, necessary skills, and outcomes, used for defining roles and expectations.

Unnecessary Job Requirements

Criteria for employment that are not essential for the performance of a job and may unjustly limit the pool of applicants.

Human Resource Management

The strategic approach to the effective management of people in an organization to help them gain a competitive advantage.

Job Characteristics Model

A conceptual framework proposed to enhance employee motivation, satisfaction, and productivity through the design of jobs that have meaningful work characteristics.