Use the Following Information to Answer Questions 10-12

question 7

Multiple Choice

Use the following information to answer questions 10-12.
General Candy, Inc., a U.S. firm, manufactures and sells candies worldwide. Because of a rising price of sugar in the U.S., the company is considering to build a new plant in the U.K. The plant will cost £15 million to build. Assume that the plant will have a life of 3 years before it is confiscated by the British government zero salvage value and the discount rate of the cash flows is 10%. Consider the following cash flows for this project.
Table 9.1:

-Refer to Table 9.1.Based on the net present value,

• A) the project can be accepted because the net present value is positive.
• B) the project should be rejected because the net present value is negative.
• C) the project can be accepted because the net present value is negative.
• D) the project should be rejected because the net present value is positive.

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Definitions:

Arousal

A physiological and psychological state of being awoken or stimulated to action, often associated with increased physical activity and alertness.

Vulnerability Stress

This concept relates to how preexisting vulnerabilities in an individual can exacerbate their reaction to stress, potentially leading to worsened outcomes.

Marital Dissolution

The end of a marriage through separation, divorce, or death, resulting in the termination of the marital relationship.

Enduring Vulnerabilities

Persistent or lasting weaknesses or susceptibilities that can affect an individual's coping mechanisms or psychological resilience.