Should Tangshan Mining Company Accept a New Project If Its

question 20

Multiple Choice

Should Tangshan Mining company accept a new project if its maximum payback is 3.5 years and its initial after tax cost is $5,000,000 and it is expected to provide after-tax operating cash inflows of $1,800,000 in year 1, $1,900,000 in year 2, $700,000 in year 3 and $1,800,000 in year 4?

• A) Yes.
• B) No.
• C) It depends.
• D) None of the above.

---

Definitions:

Best-In-Class Companies

Firms recognized as being the top performers within their industry or sector, often characterized by superior performance, innovation, and ethics.

Internal Benchmarking

The process of comparing practices, processes, or performance metrics within an organization to identify best practices and improve efficiency, quality, or performance.

Best Practices

Things people and organizations do that lead to superior performance.

Best Practices

A set of guidelines, ethics, or ideas that represent the most efficient or prudent course of action in a given business situation.