Use the Information for the Question(s)below

question 83

Multiple Choice

Use the information for the question(s) below.
The Sisyphean Corporation is considering investing in a new cane manufacturing machine that has an estimated life of three years.The cost of the machine is $30,000 and the machine will be depreciated straight line over its three-year life to a residual value of $0.
The cane manufacturing machine will result in sales of 2000 canes in year 1.Sales are estimated to grow by 10% per year each year through year three.The price per cane that Sisyphean will charge its customers is $18 each and is to remain constant.The canes have a cost per unit to manufacture of $9 each.
Installation of the machine and the resulting increase in manufacturing capacity will require an increase in various net working capital accounts.It is estimated that the Sisyphean Corporation needs to hold 2% of its annual sales in cash,4% of its annual sales in accounts receivable,9% of its annual sales in inventory,and 6% of its annual sales in accounts payable.The firm is in the 35% tax bracket,and has a cost of capital of 10%.
-The amount of incremental income taxes that the Sisyphean Company will pay in the first year on this new project is closest to:

• A)$6300
• B)$5200
• C)$3500
• D)$2800

Differentiate between shared and nonshared environmental effects.

Understand the role of evolutionary psychology in explaining human behavior.

Gain knowledge on the methodology and implications of behavioral genetics research.

Comprehend the interaction of genes and environment in determining behavior.

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Definitions:

Corporate Speech

Refers to the legal doctrine that extends certain protections of free speech to corporate entities, often related to political or marketing activities.

Political Speech

Speech that is used to support political candidates or referenda. Compared to other types of speech, it is given a high level of protection by the First Amendment.

First Amendment

The First Amendment is a part of the U.S. Constitution that protects freedoms of speech, religion, press, assembly, and the right to petition the government.

Corporations

Legal entities separate from their owners, providing limited liability, ease of transferability of shares, and perpetual existence.