The BobIU Computer Graphics Co

question 25

Multiple Choice

The BobIU Computer Graphics Co. has just produced a new multimedia graphics chip which will cost $6,000,000 this year to put into production. They anticipate net cash flows of $3 million next year, $2million, $1 million, $.5 million, $.25 million and then $0 over each of the following years. The two owners require a 15% return on their investment. The value of this investment to the firm is:

• A) $750,000.10
• B) -$811,329.97
• C) $556,462.71
• D) $652,173.91
• E) -$371,782.85

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Definitions:

Discharge Level

The amount or volume of a substance released into the environment, often related to pollution control.

Emissions Tax

An emissions tax is a levy on the pollution generated by businesses or individuals, aimed at reducing the environmental harm caused by such emissions.

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Agricultural enterprises where cattle are raised for milk production, which may be processed on-site or at separate facilities.

Tradable Emissions Permit

A regulatory tool that allows businesses to buy, sell, or trade allowances that permit them a certain amount of pollutant emissions, encouraging reduction in pollution in a cost-effective manner.