Multiple Choice
Greenwich plc is considering adding two new products at a subsidiary to improve its overall competitiveness. The new products are enthusiastically supported by the managers responsible and an immediate decision is required. It is normal for the managers to calculate the net present value (NPV) for the projects before it is accepted or rejected.
Details of the proposals
-Calculate the Net Present Value of the cash flows for Project A
A) £24,050.
B) £24,000.
C) £25,000.
D) £31,000
Correct Answer:
Verified
Correct Answer:
Verified
Q9: In preference decisions, the profitability index and
Q10: Under the internal rate of return capital
Q11: Calculate the contribution per unit for the
Q12: If an investment has cash outflows of
Q15: The profitability index is used to compare
Q16: (Ignore income taxes in this problem.)
Q17: Greenwich plc is considering adding two new
Q18: Preference decisions attempt to determine which of
Q19: Explain why it is important to allow
Q31: The calculation of the net present value