Use the Information for the Question(s)below

question 86

Multiple Choice

Use the information for the question(s) below.
Shepard Industries is evaluating a proposal to expand its current distribution facilities.Management has projected the project will produce the following cash flows for the first two years (in millions) .
-The incremental unlevered net income of the Shepard Industries project in year two is closest to:

• A)$355
• B)$415
• C)$600
• D)$510

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Definitions:

Liability

Financial obligations or debts that a company owes to others, which must be settled over time through the transfer of assets, provision of services, or other economic benefits.

Voucher

A document that serves as evidence of a business transaction and authorizes the recording of that transaction in an accounting system.

Debit Memo

A document or entry that records an adjustment or increases in an account, typically indicating a debtor owes more money to the creditor.

Bank Service Charges

Fees charged by banks for various account and transaction services provided to customers.