Western Electronics (WE) Is Reviewing the Following Data Relating to a New

question 95

Multiple Choice

Western Electronics (WE) is reviewing the following data relating to a new equipment proposal: WE expects the net after-tax savings in cash outflows from the investment to be equal in each of the 5 years. What is the minimum amount of after-tax annual savings (including depreciation effects) needed to make the investment yield a 12% return (rounded to the nearest whole dollar) ?

• A)$8,189.
• B)$11,111.
• C)$12,297.
• D)$13,889.
• E)$15,678.

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Definitions:

Industrial Development

The process of establishing and growing industries within a country or region, often leading to economic growth and societal changes.

1790s

The decade from 1790 to 1799, marked by significant events like the French Revolution and the establishment of the U.S. federal government.

1824

The year notable for the United States presidential election where no candidate received a majority in the Electoral College, leading the House of Representatives to choose the president in a contingent election.

Slave Trade

The historical trade involving the forcible transport and sale of human beings as slaves, particularly prevalent across the Atlantic Ocean from the 16th to the 19th centuries.