Use the Information for the Question(s) Below

question 91

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 free cash flow from Shepard Industries project in year one is closest to:

• A) $240
• B) $300
• C) -$5
• D) $390

---

Definitions:

Market Entry

The act of introducing new products or services into an existing market, often faced with barriers that must be overcome.

Profit

The financial gain achieved when the revenue generated from business activities exceeds the expenses, costs, and taxes involved in sustaining the activity.

Positive-Sum Game

A situation in economics or game theory where all participants can gain or benefit in some way; opposite of a zero-sum game.

Zero-Sum Game

A game theory concept where one participant's gain or loss is exactly balanced by the losses or gains of the other participant(s).