Chase,IncIs Considering an Eight-Year Project That Has an Initial After-Tax

question 34

Multiple Choice

Chase,Inc.is considering an eight-year project that has an initial after-tax outlay or after-tax cost of $180,000.The future after-tax cash inflows from its project for years 1 through 8 are the same at $35,000.Chase uses the net present value method and has a discount rate of 12%.Will Chase accept the project?

• A)Chase accepts the project because the NPV is over $10,000.
• B)Chase accepts the project because the NPV is about $6,141.
• C)Chase rejects the project because the NPV is about -$6,133.
• D)Chase rejects the project because the NPV is below -$7,000.

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Definitions:

360-Degree Feedback

A performance appraisal method where an employee receives feedback from supervisors, peers, subordinates, and customers.

Structured Interviews

Interview processes that use a set sequence of questions to ensure consistency and comparability of responses across interviewees.

Task Leadership

A leadership style focused on the organization, clarification, and distribution of tasks and objectives, as well as the coordination of individuals or team efforts to achieve specific goals.

Democratic Management Style

A leadership approach that involves making decisions based on the input of the whole team, fostering collaboration and shared responsibility.