Computing the Terminal-Year FCF: Miles Cyprus Corp

question 7

Multiple Choice

Computing the terminal-year FCF: Miles Cyprus Corp. purchased a truck that currently has a book value of $1,000. If the firm sells the truck for $5,000 today, then what is the amount of cash that it will net after taxes if the firm is subject to a 30 percent marginal tax rate?

• A) $1,200
• B) $3,800
• C) $4,000
• D) $5,000

---

Definitions:

Weight Loss Strategy

A planned approach or set of practices designed to reduce an individual's body weight.

Participant Weight Loss

The amount of weight a participant in a study loses, often measured to assess the effectiveness of a diet or exercise program.

Confidence Interval

A confidence interval is a range of values, derived from sample statistics, that is likely to contain the value of an unknown population parameter, with a specified level of confidence.

Unemployment Rate

The segment of the labor force that is not employed but is actively on the lookout for a job.