Should Tangshan Mining Company Accept a New Project If the Company's

question 68

Multiple Choice

Should Tangshan Mining company accept a new project if the company's maximum payback is 3.5 years and the project's initial after-tax cost is $5,000,000 followed by 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,since the payback period of the project is less than the maximum acceptable payback period.
• B)No,since the payback period of the project is more than the maximum acceptable payback period.
• C)Yes,since the risk exposure of the project is less than the maximum acceptable risk exposure.
• D)No,since the risk exposure of the project is more than the maximum acceptable risk exposure.

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Definitions:

Fine Motor Control

Refers to the coordination of small muscles, such as those in the hands and fingers, allowing for precise movements like writing or buttoning a shirt.

Fine Touch

The sensory perception that allows for the discrimination of detailed touch or texture.

Extrapyramidal System

A neural network within the brain that is involved in the coordination and regulation of posture and muscle tone, independent of voluntary motor movements.

Rubrospinal

Referring to the rubrospinal tract, which is a pathway in the central nervous system that helps mediate voluntary motor control.