Use the Information for the Question(s)below

question 90

Multiple Choice

Use the information for the question(s) below.
Ford Motor Company is considering launching a new line of hybrid diesel-electric 4WDs. The heavy advertising expenses associated with the new 4WD launch would generate operating losses of $40 million next year. Without the new 4WD, Ford expects to earn pre-tax income of $75 million from operations next year. Ford pays a 25% tax rate on its pre-tax income.
-The amount that Ford Motor Company owes in taxes next year without the launch of the new 4WD is closest to:

• A)$13.55 million
• B)$18.75 million
• C)$8.75 million
• D)$16.75 million

---

Definitions:

Self-confidence

A belief in one's own abilities and judgment, which enables individuals to face challenges with optimism and assurance.

Risk Takers

Individuals or entities that are willing to undertake actions with uncertain outcomes, potentially leading to significant rewards or failure.

High Degrees

Advanced levels of academic achievement, typically referring to graduate-level education such as master's or doctoral degrees.

Entrepreneurs

Individuals who initiate, manage, and assume the risks of a business venture in pursuit of profit and innovation.