4) Which one of the following will be used in the computation of the best-case analysis of a proposed project? A) Minimal number of units that are expected to be produced and sold B) The most anticipated sales price per unit von DOS T O C) The lowest variable cost per unit that can reasonably be expected D) The highest level of fixed costs that is actually anticipated E) The lowest expected salvage value that can be obtained for a project's fixed assets 5 5) Which one of the following should not be included in the analysis of a new product? A) Increase in accounts payable for inventory purchases of the new product B) Market value of a machine owned by the firm which will be used to produce the new product C) Reduction in sales for a current product once the new product is introduced D) Money already spent for research and development of the new product E) Increase in accounts receivable needed to finance sales of the new product 6) 6) In an effort to capture the large jet market, Hiro Airplanes invested $11.264 billion developing its B490, which is capable of carrying 840 passengers. The plane has a list price of $276.5 million. In discussing the plane, Hiro Airplanes stated that the company would break even when 253 B490s were sold. Assume the break-even sales figure given is the cash flow break-even. Suppose the sales of the B490 last for only 12 years. How many airplanes must Hiro sell per year to provide its shareholders a rate of return of 17 percent on this investment? A) 54.40 B) 53.10 C) 50.72 D) 52.48 E) 50.17 7) - 7) Which one of the following best illustrates erosion as it relates to a hot dog stand located on the beach? A) Losing sales due to bad weather dos B) Selling fewer hot dogs because hamburgers were added to the menu C) Providing both ketchup and mustard for customers' use D) Offering french fries but not onion rings E) Repairing the roof of the hot dog stand because of water damage 8) As the degree of sensitivity of a project to a single variable rises, the A) less volatile the project's net present value is to that variable. B) greater is the sensitivity of the project to the other variable inputs. C) less important the variable is to the final outcome of the project. D) less volatile is the project's outcome. E) greater is the importance of accurately predicting the value of that variable