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

question 15

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. Using the Net Present Value approach the management of Han Ltd will make which of the following decisions?

• A)Accept the investment proposal and purchase the new processor.
• B)Retain the current processor and buy the new processor.
• C)Retain the current processor.
• D)Increase the residual value of the processor.

---

Definitions:

Occupational Assessment

The evaluation process used to analyze an individual's skills, abilities, and interests for career planning and development.

Adaptive Behavior

The collection of conceptual, social, and practical skills that all people learn in order to function in their daily lives.

Personal

Pertaining to or concerning an individual and their private, personal life, interests, or activities.

Social Skills

The abilities used to communicate and interact with others, including both verbal and non-verbal communication, such as body language.