(Appendix 8C)The Following Information Concerning a Proposed Capital Budgeting Project

question 146

Multiple Choice

(Appendix 8C) The following information concerning a proposed capital budgeting project has been provided by Wick Corporation: The expected life of the project is 4 years.The income tax rate is 35%.The after-tax discount rate is 14%.The company uses straight-line depreciation on all equipment and the annual depreciation expense would be $60, 000.Assume cash flows occur at the end of the year except for the initial investments.The company takes income taxes into account in its capital budgeting. The net present value of the project is closest to:

• A)$101, 282
• B)$224, 850
• C)$119, 042
• D)$266, 500

---

Definitions:

Self-Efficacy

The belief in one's ability to succeed in specific situations or accomplish a task.

Dissemination

The act of spreading information, knowledge, or ideas to a wide audience.

Behavior Change

A modification in an individual's actions, habits, or attitudes often aimed at improving personal health or adapting to new circumstances.

Food Preparation

The process of planning, cooking, and arranging food for consumption, taking into account health and safety standards.