Bruno's Lunch Counter Is Expanding and Expects Operating Cash Flows

question 90

Multiple Choice

Bruno's Lunch Counter is expanding and expects operating cash flows of $29,000 a year for 4 years as a result.This expansion requires $39,000 in new fixed assets.These assets will be worthless at the end of the project.In addition,the project requires $3,000 of net working capital throughout the life of the project.What is the net present value of this expansion project at a required rate of return of 15 percent?

• A)$18,477.29
• B)$21,033.33
• C)$28,288.70
• D)$29,416.08
• E)$42,509.63

---

Definitions:

Procedural Safeguards

Policies and procedures designed to protect individuals’ rights and ensure fair treatment within a system or process.

Role Reversal

involves switching roles within interactions to gain insight or empathy towards another's perspective, often used as a technique in therapy or conflict resolution.

Escalating Reciprocation

A process where two or more parties increase their commitments or responses based on the actions of the other, often leading to an escalation in conflict or competition.

Interpersonal Tension

A state of psychological strain or stress occurring between individuals due to conflicts or disagreements.