What is the payback period for a RM20,000 project that is expected to return RM6,000 for the first two years and RM3,000 for year 3 to 5?

a. 4.75 years

b. 3.5 years

c. 5.0 years

d. 4.5 years

Suppose Libra Sdn. Bhd. has a DOL of 9 at the 1000 units of sales. Which of the following could express the degree of operating leverage?

a. If sales rise by 9%, EBIT will rise by 9%.

b. If sales rise by 1%, EBIT will rise by 1%.

c. If sales rise by 9%, EBIT will fall by 1%.

d. If sales rise by 1%, EBIT will rise by 9%.