A Company Needs an Increase in Working Capital of $30,000

question 14

Multiple Choice

A company needs an increase in working capital of $30,000 in a project that will last 2 years. The company's tax rate is 30% and its discount rate is 14%. The present value of the release of the working capital at the end of the project is closest to:

• A) $16,159
• B) $9,000
• C) $21,000
• D) $23,084

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Definitions:

Electric Utilities

Companies that generate, transmit, and distribute electricity to consumers and businesses.

Aircraft Manufacturing

The industry focused on the production and assembly of aircraft and their components, including commercial, military, and private planes.

Public Regulation

Public regulation involves government intervention in the market to correct market failures, protect consumers, and achieve social goals.

Industrial Regulation

Governmental policies and laws aimed at controlling or guiding business practices in specific sectors to ensure fair practices, safety, and competition.