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:

Short-term Memory

The capacity for holding a small amount of information in mind in an active, readily available state for a short period of time.

Rehearsal

A practice session in preparation for a public performance (as of a play or speech) or a process in memory retention involving the repetition of information.

Short-term Memory

Is a cognitive system with a limited capacity that is responsible for temporarily holding information available for processing.

Verbal

Pertaining to words and language, both spoken and written.