Greenwich Plc Is Considering Adding Two New Products at a Subsidiary

question 59

Multiple Choice

Greenwich plc is considering adding two new products at a subsidiary to improve its overall competitiveness. The new products are enthusiastically supported by the managers responsible and an immediate decision is required. It is normal for the managers to calculate the net present value (NPV) for the projects before it is accepted or rejected.
Details of the proposals

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Calculate the relevant annual cash flow for Project A

• A)£190,000.
• B)£243,000.
• C)£137,000.
• D)£84,000.

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