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melinoma86 melinoma86
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Posts: 295
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3 months ago
Use the figure for the question(s) below.




The graph above shows the break-even analysis for the cost of making a certain good. Based on this chart, which of the following is true?

▸ The net present value (NPV) of the project will be positive if the cost of good sold is greater than $110.

▸ The net present value (NPV) of the project increases with increased cost of goods sold.

▸ The project should not be undertaken if the predicted cost of goods sold is less than $110.

▸ If the good costs $110 to make, the net present value (NPV) of the project will be zero.
Textbook 

Fundamentals of Corporate Finance


Edition: 2nd
Authors:
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ccnastopoulosccnastopoulos
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Posts: 280
3 months ago
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If the good costs $110 to make, the net present value (NPV) of the project will be zero.
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3 months ago
You make an excellent tutor!
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