Rossiter Restaurants Is Analyzing a Project That Requires $180,000 of Fixed

question 83

Multiple Choice

Rossiter Restaurants is analyzing a project that requires $180,000 of fixed assets.When the project ends,those assets are expected to have an aftertax salvage value of $45,000.How is the $45,000 salvage value handled when computing the net present value of the project?

• A)reduction in the cash outflow at time zero
• B)cash inflow in the final year of the project
• C)cash inflow for the year following the final year of the project
• D)cash inflow prorated over the life of the project
• E)not included in the net present value

---

Definitions:

Persistent Depressive Disorder

Mood disorder, characterized by mildly or moderately depressed moods, that persists for at least two years.

Psychologists

Professionals trained in the study of the mind and behavior, who apply psychological research and techniques in various settings.

Sadness

An emotion characterized by feelings of unhappiness and low spirits, often as a response to loss or disappointment.

Persistent Depressive Disorder

A long-term form of depression characterized by a persistent low mood and other depressive symptoms.