Given the Following Information,calculate the NPV of a Proposed Project

question 191

Multiple Choice

Given the following information,calculate the NPV of a proposed project: Cost = $4,000;estimated life = 3 years;initial decrease in accounts receivable = $1000,which must be restored at the end of the project's life;estimated salvage value = $1,000;net income before taxes and depreciation = $2,000 per year;method of depreciation = MACRS;tax rate = 40 percent;required rate of return = 18 percent.

• A) $1,137
• B) −$151
• C) $137
• D) $804
• E) $544

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Definitions:

Manipulation And Cooption

Strategies used to influence or control others' actions or decisions subtly and, sometimes, unethically.

Explicit And Implicit Coercion

The use of direct threats or force to influence actions (explicit) and the subtler pressure exerted through social norms or expectations (implicit).

Shared Power Strategy

An approach to leadership and decision-making that involves distributing power and authority within a group or organization, fostering collaboration and empowerment.

Force-Coercion Strategy

A method of implementing change or achieving objectives by using authority, power, or threats.