Golden Sands Distribution Company Is Considering the Purchase of a New

question 16

Multiple Choice

Golden Sands Distribution Company is considering the purchase of a new pallet wrapping machine at a cost of $55 000.The machine will result in increased cash flow for the company of $13 000 per annum for the next five years.What is the NPV of this project if the company use a discount rate of 12% per annum?

• A)$46 862
• B)-$8138
• C)$8138
• D)-$46 862
• E)$10 000

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Definitions:

Globalization

The process of interaction and integration among people, companies, and governments worldwide, often leading to global interdependence.

Vagabonds

Individuals who wander from place to place without a permanent home or job, often living a lifestyle outside conventional societal norms.

Freely

Without restriction or limitation; able to act, speak, or think without being hindered or constrained.

Globality

The condition or quality of being global, emphasizing a comprehensive, worldwide perspective.