A Project Involves an Immediate Expenditure of $10 000, and Further

question 20

Multiple Choice

A project involves an immediate expenditure of $10 000, and further expenditures of $10 000 every year for the next four years. It will yield an income of $8 000 at the end of the first year, and this will increase by $8 000 a year. This is the only project the company has; it is taxed at 50%, and its after-tax MARR is 10%. Assume that losses cannot be carried forward to offset future income. What is the present worth of the project to the company?

• A)$7 452
• B)$9 342
• C)$12 296
• D)$15 251
• E)$27 552

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Definitions:

Infants

Young children from birth to one year of age, characterized by rapid physical growth and developmental milestones.

Males

Refers to the male members of a species, particularly humans, characterized by XY chromosomes, and typically involves specific biological and physiological traits.

Elderly

Pertaining to individuals, typically aged 65 and older, often characterized by increased vulnerability to health problems and social changes.

Cognitive Development

The development and transformation of cognitive skills, including the ability to think, reason, and comprehend.