Greenwich Plc Is Considering Adding Two New Products at a Subsidiary

question 32

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 Net Present Value of the cash flows for Project A

• A)£13,200.
• B)£25,200.
• C)£28,942.
• D)£18,942.

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Definitions:

Composite Volcanoes

Volcanic structures formed from alternating layers of lava flows, ash, and other volcanic debris.

Island Arc

Curved chains of volcanic islands located at convergent tectonic plate boundaries, often formed from the subduction of an oceanic plate under another oceanic plate.

Mid-ocean Ridge

An underwater mountain range, formed by plate tectonics, that marks the site of upwelling magma creating new oceanic crust.

Caldera-forming Eruptions

Volcanic eruptions that create large, basin-shaped depressions called calderas, formed by the collapse of a volcano into emptied magma chambers.