If a firm can sell a product, but in order to sell that product the selling price will be less than its variable costs, then the sale should be made because at least the fixed costs will be covered. TRUE OR FALSE

An investment of $1,000 with annual benefits of $150 per year for the first five years of its life and $100 per year the next five years of its life has a payback period of?

A. 7 years

B. 7.5 years

C. 8 years

D. none of the above

One thousand dollars invested today at 5 percent per year, compounded annually, for five years will be worth

a. $1,050

b. $1,250

c. $1,276

d. None of the above

If fixed costs are $500,000, the selling price is $10/unit and variable cost is $6/unit, then breakeven in dollars is

a. $5,000,000

b. $125,000

c. $1,250000

d. None of the above