A Company Needs an Increase in Working Capital of $20,000

question 41

Multiple Choice

A company needs an increase in working capital of $20,000 in a project that will last four years.The company's tax rate is 30%,and its discount rate is 10%.What is the approximate present value of the working capital to be released at the end of the project? (Do not round your intermediate calculations and round the final answer to the nearest whole dollar.)

• A) $6,000.
• B) $9,562.
• C) $13,660.
• D) $14,000.

Recognize the role of forecasting risk in project evaluation.

Use discounted cash flow (DCF) analysis correctly, including understanding the impact of options such as the option to abandon or expand a project.

Understand the adaptive significance and evolutionary strategies among nonhuman primates.

Compare and contrast the behaviors and social structures of different primate species.

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Definitions:

Price Discounting

A strategy of reducing the selling price of goods or services to attract customers or drive sales volume.