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:

Emotional Benefits

Emotional benefits are the positive feelings or emotional responses a consumer perceives they will gain from using a product or service.

Smartphone Users

Individuals who use smartphones, which are mobile phones with advanced features like internet connectivity and the ability to run apps.

Shopping-related Information

Data or details relevant to the purchasing of goods or services.

Audience Attention

The level of focus and interest an audience gives to a message or presentation.