Use the Following Information to Answer the Question(s)below

question 57

Multiple Choice

Use the following information to answer the question(s) below.
Taggart Transcontinental is considering adding a trucking division to expand the coverage of its existing rail lines.The trucking division will cost $1,000,000 and is expected to generate free cash flows of $100,000 for each of the next five years.Taggart Transcontinental forecasts that future free cash flows after year 5 will grow at 2% per year,forever.Taggart Transcontinental's cost of capital is 10%.
-The NPV for the trucking division is closest to:

• A)$170,750.
• B)$200,000.
• C)$212,550.
• D)$250,000.
• E)$312,500.

Understand the development and significance of peer relationships during middle childhood.

Recognize effective educational strategies and the role of motivation in student success.

Acknowledge the influence of schools and teachers on child development and self-esteem in middle childhood.

Understand the structure, function, and types of administrative agencies.

---

Definitions:

Pumped-Storage Hydropower

A type of hydroelectric power system that stores energy by pumping water from a lower elevation reservoir to a higher elevation one and generating electricity as the water flows back down through turbines.

Peak Periods

Times of highest activity or demand in a particular process or system.

Output

The amount of something produced by a person, machine, or industry.

Large Dams

Substantial barriers constructed across rivers or waterways to control the flow or storage of water.