A company's relevant range of production is:

Select one:

A.

The production range over which CVP assumptions are valid.

B.

The production range from zero to 100% of plant capacity.

C.

The production range that covers fixed but not variable costs.

D.

The production range beyond the break-even point.

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A machine cost $46,000 and had a useful life of 4 years and a residual value of $7,000. What is the net present value of the machine if the annual cash flow is $16,000 and the company uses a discount rate of 10%? An annuity table shows the present value of $1 at 10% for 4 years to be 0.683. The present value of an ordinary annuity of $1 discounted at 10% for 4 years is 3.170.

Select one:

A.

$16,501

B.

$13,000

C.

$9,501

D.

$33,118