A Proposed Expansion Project Is Expected to Increase Sales of JL

question 59

Multiple Choice

A proposed expansion project is expected to increase sales of JL Ticker's Store by $41,000 and increase cash expenses by $21,000.The project will cost $28,000 and be depreciated using straight-line depreciation to a zero book value over the 4-year life of the project.The store has a marginal tax rate of 30 percent.What is the operating cash flow of the project using the tax shield approach?

• A)$5,600
• B)$7,800
• C)$16,100
• D)$13,300
• E)$14,600

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Definitions:

Antisocial Behaviour

Actions that harm or lack consideration for the well-being of others, often violating social norms or laws.

Havighurst

Refers to Robert Havighurst, an American psychologist known for his research on human development and aging, and the concept of developmental tasks.

Developmental Tasks

A series of skills and milestones that individuals are expected to achieve at certain stages in life, contributing to their social and emotional development.

Inborn Timetables

Innate schedules within organisms that guide the timing of developmental events.