27. We are thinking of investing in a project that would generate $25,000 per year for 6 years. If the project has an initial investment of $115,572, what would the approximate internal rate of return be for this project?
    1. 8%

B) 10%

C) 14%

D) 5%

27. Bisla designed a new tiny car and wants to price it using the cost-plus method. The company is planning to sell 25,000 cars.

Direct material cost per car.................................................$18,100

Direct labor cost per car........................................................$ 1,200

Variable manufacturing overhead cost per car ....................$ 2,700

Selling and General expenses.............................................$ 75,150,000

Investment required to develop the car ............................$ 50,000,000

Required rate of return ......... .................................................... 25%

Which price is the closest to what Bisla wants to sell the car at:

1. $17,655
2. $22,675
3. $25,500
4. $31,300

28. The 98-cent store sells 1,500,000 products per month, each at $0.98, and it desires a $250,000 profit each month. What is the maximum allowable cost to produce 1,500,000 products that the 98-cent store sells?
    1. $1,000,000
    2. $550,000
    3. $789,500
    4. $1,220,000