A Company Needs an Increase in Working Capital of $50,000

question 63

Multiple Choice

A company needs an increase in working capital of $50,000 in a project that will last 4 years.The company's tax rate is 30% and its after-tax discount rate is 8%.The present value of the release of the working capital at the end of the project is closest to:

• A) $36,750
• B) $15,000
• C) $25,726
• D) $35,000

---

Definitions:

Team-Based

Involving collaborative efforts among members of a group working together towards a common goal.

Union Rules

The set of regulations and agreements that govern the operations of labor unions and the behavior of their members.

Job Enrichment

Strategies to improve job satisfaction by adding more meaningful tasks, granting more control, and offering feedback to increase an employee's responsibility and growth.

Scanlon Plan

A type of employee incentive plan that focuses on sharing the cost savings or productivity gains with the workers.