Annala Corporation is considering a capital budgeting project that would require investing $80,000 in equipment with an expected life of 4 years and zero salvage value. Annual incremental sales would be $250,000 and annual incremental cash operating expenses would be $180,000. The project would also require an immediate investment in working capital of $20,000 which would be released for use elsewhere at the end of the project. The company's income tax rate is 30% and its after-tax discount rate is 13%. The company uses straight-line depreciation. Assume cash flows occur at the end of the year except for the initial investments. The company takes income taxes into account in its capital budgeting. The net present value of the entire project is closest to:See separate Exhibit 13B-1, to
determine the appropriate discount factor(s) using the tables provided.
A. $63,570
B. $140,000
C. $120,440
D. $75,830
Answer: D
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The purchases journal includes the following column(s):
a. Purchases Debit. b. All of the answers listed c. Accounts Payable Debit. d. Freight In Credit.
Taft Company produces 5,00 . pallets each day. The average number of units in work in process is 10,000 . having an average cost of $35,000 . The annual carrying costs related to inventory are 20%. Consultants have determined that the work in process could be reduced by as much as 25% by rearranging the factory floor. What would the throughput time be if Harrison implements the recommended
changes? a. Twelve hours b. One day c. One and one-half days d. Two days
If you were developing an incentive system designed to help drive successful strategy execution, which compensation and reward system would you NOT consider in your strategy execution effort?
A. generous rewards for people who turn in outstanding performances B. keeping the time between achieving the target performance outcome and the payment of the reward as short as possible C. tying incentives to performance outcomes directly linked to good strategy execution and financial performance D. a reward system that involves 50 percent nonmonetary rewards and a work environment that avoids placing pressure on managers and employees to perform at high levels E. making sure the performance targets that each individual or team is expected to achieve involve outcomes that the individual or team can personally affect
Elections for union officers are regulated by
a. the Labor-Management Relations Act. b. the Civil Rights Act. c. the Labor-Management Reporting and Disclosure Act. d. no federal law.