What Is the Undiscounted Cash Flow in the Final Year

question 49

Multiple Choice

What is the undiscounted cash flow in the final year of an investment, assuming: 10,000 after-tax cash flows from operations, the fully depreciated machine, the sole asset in the pool, is sold for $1,000, the project had required $2,000 in additional working capital, and a 35 percent tax rate?

• A)$8,450
• B)$12,600
• C)$12,650
• D)$14,000

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Definitions:

Monopoly

A market in which there is a single seller or a very limited number of sellers.

Marketing Territories

Defined geographic or demographic areas assigned to marketers or sales teams to manage and promote products or services within.

Marketing Costs

The expenses associated with promoting and selling products or services, including advertising, market research, and distribution.

Misuse Of Market Power

The practice where a business with significant market power engages in conduct that prevents or diminishes competition in a market.