HIGHLIGHT ANSWERS

If pretax profits decrease by 13.8% when the DOL is 3.8, then the decrease in sales is: A. 2.75% B. 0.28% C. 3.63% D. 10.00% 9, 10. Which of the following statements is most likely correct for a project costing $$0,000 and returning $14,000 per year for 5 years? A. NPV= $20,000. B. NPV $3,071.01. C.RR is greater than 10%. D. IRR-2.8%. 11. What is the approximate IRR for a project that costs $100,000 and provides cash inflows of $30,000 for 6 years? A. 30.0% B. 19.9% C. 80.0% D. 32.3%