Temple Corp

question 47

Multiple Choice

Temple Corp.is considering a new project whose data are shown below.The equipment that would be used has a 3-year tax life,would be depreciated by the straight-line method over its 3-year life,and would have a zero salvage value.No change in net operating working capital would be required.Revenues and other operating costs are expected to be constant over the project's 3-year life.What is the project's NPV?

• A)$15,740
• B)$16,569
• C)$17,441
• D)$18,359
• E)$19,325

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Definitions:

Cash Flow Statement

This financial document provides a comprehensive view of a company's cash inflows from operations and investments, alongside the expenditures on business and investment actions within a designated timeframe.

Common Stock

A type of security that signifies ownership in a corporation and represents a claim on part of the corporation's profits or losses.

Generally Accepted Accounting Principles

A set of widely adhered to principles and guidelines for reporting financial information.

Financial Accounting Standards Board

An independent organization responsible for establishing and improving financial accounting and reporting standards in the United States.