Greenwich Plc Is Considering Adding Two New Products at a Subsidiary

question 4

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

-Calculate the Present Value of the cash flows for Project B

• A)£788,942.
• B)£768,942.
• C)£535,000
• D)£825,000.

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Definitions:

Statutes Of Limitations

Laws that set the maximum time after an event within which legal proceedings may be initiated.

Law Of Repudiation

The legal doctrine concerning the refusal of a party to honor a contract, which can result in the contract being voided and possible damages awarded for breach of contract.

Substantial Performance Doctrine

A legal principle stating that if a party to a contract fulfills enough of its duties to warrant payment, they may be entitled to payment less any damages caused by their failure to fully comply with the contract terms.

Contract Price

The financial consideration stipulated in a contract that is agreed upon by both parties for the sale, lease, or other forms of exchange.