16.

Graded Exam #4 If a firm's forecasted sales are $250,000 and its break-even sales are $190,000, the margin of safety in dollars is: Select one: a. $ 60,000. b. $250,000. c. $190,000. d. $440,000. e. $ 24,000.

20.

Graded Exam #4 The time expected to pass before the net cash flows from an investment would return its initial cost is called the: Select one: a. Amortization period. b. Payback period. c. Interest period. d. Budgeting period. e. Discounted cash flow period.

21.

Graded Exam #4 Which one of the following statements is not true? Select one: a. Total fixed costs remain the same regardless of volume. b. Total variable costs change with volume. c. Total variable costs decrease as the volume increases. d. Fixed costs per unit increase as the volume decreases. e. Variable costs per unit remain the same regardless of the volume.

Graded Exam #4

22.If the internal rate of return (IRR) of an investment is below the hurdle rate, the project should be accepted.

Select one: True False