Lincoln Industries Inc

question 4

Multiple Choice

Lincoln Industries Inc. is considering a project that has an initial after-tax outlay or after-tax cost of $350,000. The respective future cash inflows from its five-year project for years 1 through 5 are $75,000 each year. Lincoln expects an additional cash flow of $50,000 in the fifth year. The firm uses the net present value method and has a discount rate of 10%. Will Lincoln accept the project?

• A) Lincoln accepts the project because it has an IRR greater than 10%.
• B) Lincoln rejects the project because it has an IRR less than 10%.
• C) Lincoln accepts the project because it has an IRR greater than 5%.
• D) There is not enough information to answer this question.

---

Definitions:

Mentoring

A process in which an experienced individual provides guidance, advice, and support to a less experienced person.

Job Training

Education or instruction in the skills and knowledge necessary to perform a specific job or task.

Career Stage Model

A framework describing the phases individuals go through during their working life, typically including entry, growth, maturity, and decline stages.

Transition From School

The period of adjustment and adaptation from the educational environment to the professional or higher education settings.