Should Tangshan Mining Company Accept a New Project If Its

question 60

Multiple Choice

Should Tangshan Mining company accept a new project if its maximum payback is 3.25 years and its 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.

---

Definitions:

Blended Families

A family consisting of remarried couples with at least one stepchild living with them.

Psychological Counseling

The professional practice of helping individuals understand and manage their thoughts, emotions, and behaviors through various therapeutic techniques.

Boomerang Children

Adult children who return to live with their parents after a period of independence, often due to economic reasons or personal circumstances.

Psychological Distress

A state of emotional suffering characterized by symptoms such as anxiety, depression, and stress, often resulting from adverse life circumstances.