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

question 109

Multiple Choice

(Appendix 13C) Prudencio Corporation has provided the following information concerning a capital budgeting 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 3 is:

• A) $70,000
• B) $49,000
• C) $89,000
• D) $61,000

---

Definitions:

Qur'an

The central religious text of Islam, believed by Muslims to be a revelation from God (Allah).

Stock Option Plan

A compensation strategy that gives employees the option to buy company stock at a future date at a price established when the option is granted.

Incentive Plans

Designed compensation strategies that aim to motivate employees by tying a portion of their earnings to performance metrics.

Work Teams

Groups of employees who are assigned to collaborate and work together towards achieving a common goal or completing a specific project.