NPV $40,000 $20,000 $10,000 SO $50 $100 Cost of Goods Sold $150 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 False? O The project should not be undertaken if the predicted cost of goods sold is more than $110 O If the good costs are $100 to make, the net present value (NPV) of the project will be approximately $5,000 The net present value (NPV) of the project decreases with increased cost of goods sold The net present value (NPV) of the project will be positive if the cost of goods sold is more than $110
NPV $40,000 $20,000 $10,000 SO $50 $100 Cost of Goods Sold $150 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 False? O The project should not be undertaken if the predicted cost of goods sold is more than $110 O If the good costs are $100 to make, the net present value (NPV) of the project will be approximately $5,000 The net present value (NPV) of the project decreases with increased cost of goods sold The net present value (NPV) of the project will be positive if the cost of goods sold is more than $110
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:NPV
$40,000
$20,000
$10,000
SO
$50
$100
Cost of Goods Sold
$150
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 False?
The project should not be undertaken if the predicted cost of goods
sold is more than $110
O If the good costs are $100 to make, the net present value (NPV) of
the project will be approximately $5,000
The net present value (NPV) of the project decreases with increased
cost of goods sold
The net present value (NPV) of the project will be positive if the cost
of goods sold is more than $110
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