A Capital Proposal Is Projected to Result in Annual Savings

question 92

Multiple Choice

A capital proposal is projected to result in annual savings of $25,000. What is the after-tax cash flow if the tax rate is 35%?

• A) $25,000
• B) $16,250
• C) $8,750
• D) $7,500
• E) $5,000

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Definitions:

Resource Acquisition

The process by which firms obtain necessary inputs and resources to carry out their operations.

Productivity

The measure of how efficiently production inputs, such as labor and capital, are converted into outputs, or goods and services.

Turnover

Refers to people leaving their jobs, whether voluntarily or involuntarily (i.e., through firings).

Absenteeism

The habitual non-presence of an employee at their job, which can include both justified absences, such as illness, and unjustified absences.