Thomson Media Is Considering Some New Equipment Whose Data Are

question 42

Multiple Choice

Thomson Media is considering some new equipment whose data are shown below.The equipment has a 3-year tax life and would be fully depreciated by the straight-line method over 3 years,but it would have a positive pre-tax salvage value at the end of Year 3,when the project would be closed down.Also,additional net operating working capital would be required,but it would be recovered at the end of the project's life.Revenues and other operating costs are expected to be constant over the project's 3-year life.What is the project's NPV?

• A)$20,762
• B)$21,854
• C)$23,005
• D)$24,155
• E)$25,363

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Definitions:

Attitude Change

The process through which an individual's stance or outlook on an issue, person, or object is altered, typically as a result of persuasion, information, or personal experiences.

Self-esteem

Refers to one's overall subjective sense of personal worth or value.

Extreme Attitudes

Strongly held beliefs or opinions that are at the far end of a spectrum and may provoke polarization or conflict.

Affective Commitment

Refers to the emotional attachment an employee feels towards their organization, driving loyalty and continued employment.