TexMex Food Company Is Considering a New Salsa Whose Data

question 27

Multiple Choice

TexMex Food Company is considering a new salsa whose data are shown below.The equipment to be used would be depreciated by the straight-line method over its 3-year life and would have a zero salvage value,and no change in net operating working capital would be required.Revenues and other operating costs are expected to be constant over the project's 3-year life.However,this project would compete with other TexMex products and would reduce their pre-tax annual cash flows.What is the project's NPV? (Hint: Cash flows are constant in Years 1-3. ) Do not round the intermediate calculations and round the final answer to the nearest whole number.

• A) 2,477
• B) ​1,680
• C) ​2,211
• D) ​2,101
• E) ​2,742

---

Definitions:

Restructuring

Restructuring involves making significant changes to a company’s operations, structure, or finances, often to improve efficiency, competitiveness, or performance.

Just Cause

A legal standard that employers must meet to justify disciplinary actions or termination, demonstrating a valid and fair reason for their decisions.

Provincial Employment Standards

Regulations set by provincial governments outlining the minimum terms of employment, including hours of work, wages, and leave entitlements, to protect workers' rights.

Anti-spam Legislation

Laws designed to prevent unwanted or unsolicited emails by establishing requirements for sending bulk commercial messages.