A New 5-Year Project Will Require $194,000 for Fixed Assets,$58,000

question 6

Multiple Choice

A new 5-year project will require $194,000 for fixed assets,$58,000 for inventory,and $42,000 for accounts receivable.Short-term debt is expected to increase by $46,000.The fixed assets will be depreciated straight-line to zero over the project's life and have an expected after-tax salvage value of $2,900.The net working capital returns to its original level at the end of the project.The tax rate is 34 percent,and the required return is 13 percent.What is the cash flow recovery from net working capital at the end of this project?

• A)$54,000
• B)$35,000
• C)$146,000
• D)$108,000
• E)$63,000

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Definitions:

Power

The power to shape or control the actions of others and determine the outcome of situations.

Transformational Leadership

A leadership approach that causes change in individuals and social systems, aiming to develop followers into leaders themselves.

Leader-Member Exchange

The dynamic and unique relationships between a leader and each of their team members.

Behavioral Approach

The study of leadership focusing on the observable behaviors and actions of leaders, rather than on their mental qualities or internal states.