Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1 According to the breakeven analysis graph, which of the following statement is NOT correct? A. The total cost grows with sales B. The total

image text in transcribed

1 According to the breakeven analysis graph, which of the following statement is NOT correct? A. The total cost grows with sales B. The total cost equals to the sum of fixed and variable costs C. The fixed cost grows with sales D. The breakeven point is realized when the sales is around 2000 units 2 Which of the following descriptions of the se sitivity anilysis result in the graph is NOT correct? A. Within the defined range, the NPV is always positive B. If fixed cost lies within the defined range, we can consider the project C. There is a negative correlation between fixed cost ( x-axis) and NPV ( y-axis) D. NPV is ALWAYS positve even when fixed cost goes beyond the defined range 3 Which of the following descriptions of the simulation results is NOT correct? A. More than 50% of chance NPV is greater than $100,000 B. More than 85% of chance that NPV is positive C. Less than 15% of chance that NPV is negative D. We should definitely take this project

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Management Theory And Practice

Authors: Prasanna Chandra

10th Edition

9353166527, 978-9353166526

More Books

Students also viewed these Finance questions

Question

BPR always involves automation. Group of answer choices True False

Answered: 1 week ago

Question

9. Explain the relationship between identity and communication.

Answered: 1 week ago