Stu Is Working on a Bid for a Contract

question 65

Multiple Choice

Stu is working on a bid for a contract.Thus far,he has determined that he will need $218,000 for fixed assets and another $41,000 for net working capital at Time 0.He has also determined that he can recover $79,900 aftertax for the combined fixed assets and net working capital at the end of the 3-year project.What operating cash flow will be required each year for the project to return 14 percent in nominal terms?

• A)$116,079.42
• B)$97,487.79
• C)$110,220.48
• D)$88,330.01
• E)$113,360.69

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Definitions:

Manufacture of Consent

A concept suggesting that the media and powerful elite shape public opinion and consent through the manipulation of news, information, and cultural products.

Limited Effects

A theory suggesting that media has a minimal or limited influence on individuals, as their real-world social interactions and personal factors play a more significant role in shaping attitudes and behaviors.

Social and Psychological Factors

Elements that influence the behavior, attitudes, and emotions of individuals, stemming from their society and psychological makeup.

Public Mind

The collective beliefs, opinions, and perceptions held by the general population at a given time.