Use the Information Below to Answer the Following Questions -Refer to the Table Above

question 9

Multiple Choice

Use the information below to answer the following questions.
Han Ltd supplies chilli paste to large supermarket chains. The company is currently considering scrapping the old processor and investing in a new processor. Information about the investment is as follows: $$\begin{array} { l r } \text { Initial investment in processor } & \$ 105,000 \\\text { Operating cash flows over next 5 years: } & \\\quad \text { Cash receipts } & \$ 80,000 \\\quad \text { Cash payments } & \$ 40,000 \\\text { Residual value of processor in 5 years } & \$ 5,000 \\\text { Required rate of return } & 8 \% \\\text { Depreciation per antum } & \$ 20,000\end{array}$$
-Refer to the table above. The net present value (rounded) of the investment is:

• A)$68,125.
• B)$66,500.
• C)$67,000.
• D)$71,000.

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Definitions:

Projective Tests

A type of personality test in which the individual responds to ambiguous stimuli, revealing hidden emotions and internal conflicts.

Standardized

The process of making something conform to a standard, often through testing, to ensure uniformity and comparability.

Oral Stage

The first stage in Freudian psychosexual development, occurring in the first year of life, where the mouth is the primary source of gratification and exploration.

Fixated

An obsessive or intense focus on an object, activity, concept, or person, potentially leading to dysfunctional behavior.