A Project Costs $20,000 Today and Is Expected to Return

question 27

Multiple Choice

A project costs $20,000 today and is expected to return 20% before corporate income taxes. The appropriate after-tax cost of capital is 12%, and the firm pays taxes at the marginal rate of 35%.
What is the project's NPV? Round your answer to the nearest dollar.

• A)$179
• B)$2,679
• C)$1,429
• D)none of the above

Identify and understand the reflexes and behaviors of newborns.

Distinguish between the influences of nature and nurture on human development.

Explore the developmental changes in physical, cognitive, and social domains across the lifespan.

Identify various developmental theories and their implications on understanding human growth.

---

Definitions:

Lending Decision

The process by which a lender evaluates the risk and potential of a loan application before granting funds to the borrower.

Net Profit

The total revenue of a company after subtracting all costs and expenses, including taxes and operational expenses.

Total Assets

The combined value of all resources owned by a company, including cash, investments, property, and equipment.

Startups

Newly established businesses, typically small, that aim to meet a marketplace need by developing a viable business model around a product, service, process, or platform.