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

question 50

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:
$$\begin{array} { l r } \text { Initial investment in processor } & \$ 105,000 \\\text { Operating cash flows over next 5 years: } & \\\quad \text { Cash receipts } & \$ 50,000 \\\quad \text { Cash payments } & \$ 20,000 \\\text { Residual value of processor in 5 years } & \$ 5,000 \\\text { Required rate of return } & 8 \% \\\text { Depreciation per annum } & \$ 20,000\end{array}$$
-Refer to the table above.The net present value (rounded) of the investment is:

• A) $18,195.
• B) $16,500.
• C) $17,000.
• D) $21,000.

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Definitions:

Social-cultural Perspective

An approach in psychology that examines how societal and cultural factors influence behavior and thinking.

Asian

Relating to Asia or its peoples, languages, or cultures.

North American

Pertaining to the continent comprising Canada and the United States, characterized by diverse cultures and landscapes.

Attractiveness

The quality of being appealing or pleasing in appearance or character.