Facio Corporation Has Provided the Following Data Concerning an Investment

question 105

Multiple Choice

Facio Corporation has provided the following data concerning an investment project that it is considering:
The working capital would be released for use elsewhere at the end of the project in 3 years.The company's discount rate is 8%.The net present value of the project is closest to:

• A) $(113,022)
• B) $(61,412)
• C) $3,588
• D) $52,000

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Definitions:

Goods Manufactured

The completed items that are ready for sale or use, produced by a manufacturing process during a specific accounting period.

Income Statement

A financial statement that shows a company's revenues and expenses over a specific period, resulting in a net profit or loss.

Selling Expenses

Selling expenses are costs associated with the marketing and sale of products or services, including advertising, sales commissions, and retail space rental.

General And Administrative Expenses

Operating expenses not directly tied to production, including salaries of executives, office supplies, and utilities.