A Company Is Evaluating an Investment in a Piece of Machinery.The

question 13

Multiple Choice

A company is evaluating an investment in a piece of machinery.The machine costs £10,000 and is expected to generate cash flows of £3,000 in year 1,£4,300 in year 2 and £5,800 in year 3.The discount rate is 10% and the relevant discount factors are:
$$\begin{array} { c c } \text { Year 1 } & 0.909 \\\text { Year 2 } & 0.826 \\\text { Year 3 } & 0.751\end{array}$$
Calculate the NPV

• A) £13,100
• B) £10,634.60
• C) £634.60
• D) £0

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Definitions:

Foreign Affairs

Pertains to matters concerning the relationships and interactions between countries, including diplomacy, international trade, and geopolitical strategy.

White Regimes

Governments or political systems historically established and maintained by white populations, often in regions where they were not the demographic majority, such as in South Africa under apartheid.

South Africa

A country located at the southern tip of Africa, known for its diverse cultures, languages, and the significant historical impact of apartheid.

Soviet Union

A former federation of communist republics in Eastern Europe and Northern Asia, existing from 1922 until 1991, officially known as the Union of Soviet Socialist Republics (USSR).