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.

Question

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 Net Present Value of the cash flows for Project A

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

Quizplus · Accepted Answer

The Net Present Value (NPV) is calculated by discounting the future cash flows to their present value and subtracting the initial investment. Without the specific cash flows, discount rate, or initial investment provided, it's not possible to accurately calculate the NPV. However, based on the information given (which is none), the correct answer cannot be determined through calculation but seems to be provided as option D. This is a placeholder answer due to the lack of specific data.

Greenwich Plc Is Considering Adding Two New Products at a Subsidiary