A Company Needs an Increase in Working Capital of $50,000

question 134

Multiple Choice

A company needs an increase in working capital of $50,000 in a project that will last four years.The company's tax rate is 30%,and its discount rate is 8%.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) $15,000.
• B) $25,726.
• C) $35,000.
• D) $36,751.

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Definitions:

Non-Renewable Resources

Natural resources such as coal, oil, and natural gas that cannot be replenished at the same rate they are consumed and will eventually deplete.

Nature

The physical world collectively, including plants, animals, landscapes, and other features and products of the earth, as opposed to humans or human creations.

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A colorless, tasteless, and odorless substance in its pure form, essential for all known forms of life, and used for drinking, cleaning, and numerous industrial processes.