Exhibit 9-2 The Following Data Are Projected for a Possible Investment Project

question 29

Multiple Choice

Exhibit 9-2
The following data are projected for a possible investment project:

-Refer to Exhibit 9-2.The project requires an initial investment of $300,000.Working capital is anticipated to be variable at 10% of revenues; the working capital investment must be made at the beginning of each period,and will be recaptured in full at the end of year 4.The tax rate is 40%.
What is the net cash flow to the firm in year 1?

• A) $400
• B) $82,400
• C) $68,400
• D) $80,400
• E) $2,400

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Definitions:

Yaqui Village

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A qualitative research method in which the researcher immerses themselves in a community or group to observe behaviors and interactions from an insider perspective.

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