A Company Needs an Increase in Working Capital of $70,000

question 159

Multiple Choice

A company needs an increase in working capital of $70,000 in a project that will last three 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) $21,000.
• B) $38,898.
• C) $49,000.
• D) $55,568.

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Definitions:

Public Instruction

Educational or instructional activities provided or regulated by government entities or institutions, typically accessible to the general public.

Conservation Tasks

Cognitive exercises used in developmental psychology to assess a child's ability to understand that certain properties of objects, like volume or number, remain unchanged despite changes in the objects’ form or appearance.

Cognitive Development

involves the changes and growth in how we understand the world, think, learn, and reason over time, from childhood through adulthood.

Piaget's Stages

A theory that describes the cognitive development of children in four stages: Sensorimotor, Preoperational, Concrete Operational, and Formal Operational.