A Proposed Ten-Year Project Has the First Year Sales Revenue

question 8

Multiple Choice

A proposed ten-year project has the first year sales revenue and costs projected at $300,000 and $100,000, respectively.Sales revenue is expected to grow at 3% per year, while the costs will grow at 5% per year.The firm's marginal tax rate is 35% and required return is 9%.What is the present value of the after-tax operating cash flows generated by the project?

• A)$898,126
• B)$914,932
• C)$1,625,000
• D)$1,641,250

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Definitions:

Cerebrospinal Fluid

A clear, colorless body fluid found in the brain and spinal cord, serving as a cushion and participating in nutrient delivery and waste removal.

Cushion

A soft, padded object typically used for sitting, kneeling, or lying on for comfort or support, often found as part of furniture or decorative items.

Coordination of Movement

The harmonious functioning of muscles and nerves to produce smooth, controlled movements.

Gray Matter

Brain tissue comprising neuron cell bodies, dendrites, and unmyelinated axons, associated with processing and cognition.