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:

Unethical Behavior

Actions or practices that are morally wrong, violating the principles of fairness, honesty, or respect in a professional or personal context.

Corporate Executives

Individuals who hold senior management positions within a company, responsible for making the major corporate decisions.

Whistleblower

An individual who exposes any kind of information or activity that is deemed illegal, unethical, or not correct within an organization.

Fraudulent Accounting

A practice involving intentional manipulation of financial statements to present a false picture of a company's financial health.