Suppose an investment has cash inflows of R dollars at the end of each year for two years. The present value of these cash Inflows using a 12% discount rate will be: Multiple Choice greater than under a 10% discount rate. less than under a 10% discount rate. O equal to that under a 10% discount rate. sometimes greater than under a 10% discount rate and sometimes less; It depends on R. An increase in the discount rate: Multiple Choice will increase the present value of future cash flows. o will have no effect on net present value. o will reduce the present value of future cash flows. o o O is one method of compensating for reduced risk. Minden Corporation estimates that the following costs and activity would be associated with the manufacture and sale of product A: Number of units sold annually Required investment Unit product cost Selling and administrative expenses 37,000 $570,000 $ 35 $192,300 If the company uses the absorption costing approach to cost-plus pricing described in the text and desires a 13% rate of return on investment (ROI), the required markup on absorption cost for Product A would be closest to: Multiple Choice O O O O Ladle Corporation uses the absorption costing approach to cost-plus pricing described in the text to set prices for its products. Based on budgeted sales of 86,000 units next year, the unit product cost of a particular product is $45.80. The company's selling and administrative expenses for this product are budgeted to be $1,903,000 in total for the year. The company has invested $267,000 in this product and expects a return on investment of 10% The markup on absorption cost for this product would be closest to Multiple Choice o o 10.0% 49.0% o 58.0% o