SpaceTech Is Considering a New Project with the Following Projections

question 49

Multiple Choice

SpaceTech is considering a new project with the following projections for Year 2.
Year 2 Projections
EBIT $400,000
Interest Expense $20,000
Depreciation Expense $40,000
Tax Rate 40%
Incremental Net Working
Capital Needs $200,000

• A)$130,000
• B)$180,000
• C)$230,000
• D)$280,000

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Definitions:

Psychological Description

Description of a product or service in terms of audience benefits.

Factual Appeal

A persuasive strategy that uses facts, statistics, and objective information to influence the audience's opinion.

Transition

The process or a period of changing from one state or condition to another in various contexts, such as personal life, work, or technology.

Persona

The “author” or character who allegedly writes a document; the voice that a communicator assumes in creating a message.