Aussie Home Entertainment Pty Ltd Is Setting Up a New

question 22

Multiple Choice

Aussie Home Entertainment Pty Ltd is setting up a new franchised store in an outer suburb of Sydney.This project has an initial requirement of $261 000 for fixed assets and $27 000 for net working capital.The fixed assets will be depreciated to a zero book value over the four-year life of the project and have an estimated salvage value of $78 000.All of the net working capital will be recouped at the end of the project.The annual operating cash flow is $96 200 and the discount rate is 13 per cent.What is the project's net present value if the tax rate is 30 per cent?

• A)$41 011
• B)$45 725
• C)$48 191
• D)$50 880
• E)$50 991

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Definitions:

Magnetoencephalogram

A non-invasive neuroimaging technique that measures the magnetic fields produced by neural activity in the brain, used in the study of brain functions.

Electroencephalogram

An exam that records the brain's electrical movements through small, metallic discs affixed to the head.

EEG

Electroencephalography, a non-invasive method that records electrical activity of the brain to help diagnose conditions like epilepsy and sleep disorders.

Optical Tomography

A medical imaging technique that uses light to capture multidimensional images of a structure, especially useful in visualizing soft tissues.