This Year a Certain Investment Project Generated Revenue of $200,000

question 110

Multiple Choice

This year a certain investment project generated revenue of $200,000.Other expenses (excluding depreciation and interest expense) totalled $100,000.Depreciation expense was $50,000 and interest expense was $10,000.The firm faces a tax rate of 21%.What is the project's after-tax operating cash flow this year?

• A)$89,500
• B)$81,600
• C)$129,000
• D)$79,000

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Definitions:

Productivity

The effectiveness and efficiency with which resources are used to produce goods and services.

Hawthorne Effects

Refers to the alteration of behavior by the subjects of a study due to their awareness of being observed.

Covert Observational Methods

Research methods involving observing subjects without their knowledge, used in psychological and sociological research to gather unperturbed behavioral data.

Groupthink

A psychological phenomenon where the desire for group harmony leads to irrational or dysfunctional decision-making outcomes.