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Question
PGH Inc. is considering a new seven-year expansion project with an initial fixed asset investment of $3.87 million. The fixed asset will be depreciated straight-line to zero over its seven-year tax life, after which time it will be worthless. No bonus depreciation will be taken. The project is estimated to generate $2,103,000 in annual sales, with costs of $1,065,000. The tax rate is 21 percent and the required return is 14.6 percent. What is the net present value of this project?
A) $32,155.56
B) $71,841.16
C) $134,098.28
D) −$52,171.66
E) $95,008.04
Answer
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Related questions
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Q:
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B) general partnerships.
C) limited partnerships.
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Q:
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Q:
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B) growth rate of the firm.
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D) market value per share of outstanding stock.
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Q:
A partnership with four general partners:
A) distributes profits based on percentage of ownership.
B) has an unlimited partnership life.
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D) limits each partner's personal liability to 25 percent of the partnership's total debt.
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Q:
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Which one of the following statements concerning a sole proprietorship is correct?
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B) The profits of a sole proprietorship are subject to double taxation.
C) The owner of a sole proprietorship is personally responsible for all of the company's debts.
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E) A sole proprietorship is structured the same as a limited liability company.
Q:
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Q:
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B) whether or not to purchase a new machine for the production line.
C) how to refinance a debt issue that is maturing.
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The date on which a shareholder is officially listed as the recipient of stock rights is called the:
A) issue date.
B) offer date.
C) declaration date.
D) holder-of-record date.
E) ex-rights date.