MrQuest Plans to Engage in a Transaction That Will Generate

question 37

Multiple Choice

Mr.Quest plans to engage in a transaction that will generate $10,000 cash flow in year 0,year 1,and year 2 ($30,000 total cash flow) .Which of the following statements is true?

• A)If the cash flow is not taxable income,the before-tax and after-tax cash flows from the transaction are equal.
• B)If the cash flow is not taxable income,the NPV of the transaction is $30,000.
• C)Mr.Quest's discount rate for computing the NPV of the transaction depends on his marginal tax rate.
• D)None of the above is true.

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Definitions:

Political Skill

Political Skill is the ability to effectively understand others at work and to use such knowledge to influence others to act in ways that enhance one's personal or organizational objectives.

Job Satisfaction

The feeling of contentment or happiness that one derives from their job, influenced by various factors like work environment, compensation, and job nature.

Conditioned Response

A learned response to a previously neutral stimulus that has been repeatedly presented along with a stimulus that naturally evokes a response.

Unconditioned Response

A natural, automatic reaction to a stimulus that occurs without any need for prior learning or conditioning.