(Appendix 13C) Layer Corporation Has Provided the Following Information Concerning

question 12

Multiple Choice

(Appendix 13C) Layer Corporation has provided the following information concerning a capital budgeting project:
The company's income tax rate is 30% and its after-tax discount rate is 8%. The working capital would be required immediately and would be released for use elsewhere at the end of the project. The company uses straight-line depreciation on all equipment. Assume cash flows occur at the end of the year except for the initial investments. The company takes income taxes into account in its capital budgeting.
-The total cash flow net of income taxes in year 2 is:

• A) $70,000
• B) $47,000
• C) $30,000
• D) $61,000

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Definitions:

Negative Reinforcement

A behavioral concept where the removal or avoidance of an unpleasant stimulus strengthens a behavior.

Punishment

A method used in organizational context to reduce undesirable behaviors by applying negative consequences or removing positive ones.

Operant Conditioning

An instructional process in which the power of a behavior is influenced by the provision of rewards or the imposition of punishments.

Classical

Referring to the traditional or established principles in a field, or creative works of acknowledged excellence and enduring value.