Michelotti Inc

question 2

Multiple Choice

Michelotti Inc. is considering an investment project that would require an initial investment of $140,000 and that would last for 7 years. The annual cash receipts from the project would be $105,000 and the annual cash expenses would be $47,000. The equipment used in the project could be sold at the end of the project for a salvage value of $7,000. The company's tax rate is 30%. For tax purposes, the entire initial investment will be depreciated over 5 years without any reduction for salvage value. The company uses a discount rate of 19%.
-When computing the net present value of the project,what are the annual after-tax cash receipts?

• A)$73,500
• B)$77,000
• C)$58,000
• D)$31,500

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Definitions:

Heterosexuality

Sexual attraction or behavior directed toward individuals of the opposite sex.

Bisexuality

A sexual orientation characterized by the romantic or sexual attraction to people of both one's own gender and other genders.

Hetaerae

In ancient Greece, educated and cultured courtesans who provided companionship and intellectual engagement in addition to sexual services.

Educated Slaves

Enslaved individuals who received education, despite legal, social, or cultural restrictions.