Project W Requires a Net Investment of $1,000,000 and Has

question 107

Multiple Choice

Project W requires a net investment of $1,000,000 and has a payback period of 5.6 years.You analyze Project W and decide that Year 1 free cash flow is $100,000 too low,and Year 3 free cash flow is $100,000 too high.After making the necessary adjustments,

• A) the payback period for Project W will be longer than 5.6 years.
• B) the payback period for Project W will be shorter than 5.6 years.
• C) the IRR of Project W will increase.
• D) the NPV of Project W will decrease.

Acknowledge the role of information in enhancing or undermining power.

Analyze the impact of power dynamics on organizational climate and individual behavior.

Understand the fundamental characteristics and criteria of true teams.

Recognize the ongoing need for leadership and team building efforts to improve team processes.

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Definitions:

Dividends

Money disbursed to shareholders from a firm's profits as a profit share.

Salaries Expense

An account that records the total amount paid to employees for services performed during a specific period, excluding wages paid hourly.

Notes Payable

A formal written agreement to pay a specific amount of money on a certain date or upon demand to another party.

Salaries Expense

The total amount paid to employees for services rendered during a specific period, recorded as an expense on the income statement.