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Golden Sands Distribution Company Is Considering the Purchase of a New

Question 16

Multiple Choice

Golden Sands Distribution Company is considering the purchase of a new pallet wrapping machine at a cost of $55 000.The machine will result in increased cash flow for the company of $13 000 per annum for the next five years.What is the NPV of this project if the company use a discount rate of 12% per annum?


A) $46 862
B) -$8138
C) $8138
D) -$46 862
E) $10 000

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