You Are Working on a Bid for a Contract

question 48

Multiple Choice

You are working on a bid for a contract.Thus far,you have determined that you will need $156,000 for fixed assets and another $32,000 for net working capital at Time 0.You have also determined that you can recover $68,400 aftertax for the combined fixed assets and net working capital at the end of the 4-year project.What operating cash flow will be required each year for the project to return 16 percent in nominal terms?

• A)$46,666.67
• B)$48,929.74
• C)$55,200.16
• D)$53,686.06
• E)$50,725.50

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Definitions:

Mental Illness

A broad range of medical conditions that affect a person's thinking, feeling, mood, and behavior, which can be chronic or episodic in nature.

Headache

A pain or discomfort occurring in any area of the head, often varying in intensity, cause, and duration.

Caffeine

A stimulant chemical found in coffee, tea, and certain other plants, known for its ability to enhance alertness and reduce fatigue.

Binge Drinking

Excessive consumption of alcohol within a short duration of time.