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16. At a production level of 5.280 units, a project has total costs of $150,000. The variable cost per unit is $23.12. Assume the firm

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16. At a production level of 5.280 units, a project has total costs of $150,000. The variable cost per unit is $23.12. Assume the firm can increase production by 750 units without increasing its fixed costs. What will the total costs be if 6,000 units are produced? A) $122,780 B) $124,640 C) $138,720 D) $122,074 E) $166,646 17. Country Breads uses specialized ovens to bake its bread. One oven costs $249,000 and lasts 15 years before it needs to be replaced. The annual operating cost per oven is $34,300. What is the equivalent annual cost of an oven if the required rate of return is 14 percent? A) $74.839.43 B) $48,349.72 C) $82,800.19 D) $50,560.08 E) $28,729.77 18. The IRR that causes the net present value of the differences between two project's cash flows to equal zero is called the: A) required return. B) zero-sum rate. C) present value rate. D) break-even rate. E) crossover rate

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