Use the Information for the Question(s)below

question 8

Multiple Choice

Use the information for the question(s) below.
Shepard Industries is evaluating a proposal to expand its current distribution facilities.Management has projected the project will produce the following cash flows for the first two years (in millions) .
-The incremental EBIT for the Shepard Industries project in year one is closest to:

• A)$360
• B)$750
• C)$595
• D)$510

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Definitions:

Investment Contracts

Financial contracts that typically denote a type of investment security, entitling the investor to specific returns.

Securities Exchange Act

A U.S. law enacted in 1934 to govern the trading of securities, such as stocks and bonds, to protect investors against malpractice.

Securities Act

A U.S. law enacted in 1933 that requires transparency in the offer and sale of securities to protect investors from fraud.

Misappropriating Information

The act of taking information without permission, often confidential, and using it for personal gain or advantage.