Author Question: The advantages of NPV are all of the following EXCEPT A) it recognizes the timing of the benefits ... (Read 27 times)

audragclark

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The advantages of NPV are all of the following EXCEPT
 
  A) it recognizes the timing of the benefits resulting from the project.
  B) it can be used as a rough screening device to eliminate those projects whose returns do not
  materialize until later years.
  C) it allows the comparison of benefits and costs in a logical manner through the use of time
  value of money principles.
  D) it provides the amount by which positive NPV projects will increase the value of the firm.

Question 2

Mix Sweet Shop bakes and sells pies. Mix has annual fixed costs of 880,000 and a variable cost per
  pie of 7.50. Each pie sells for 15.50 each. The firm expects to sell 500,000 pies annually. What is
  the break-even point in pies?
 
  A) 190,440 B) 200,000 C) 280,000 D) 110,000


juwms

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Answer to Question 1

B

Answer to Question 2

D



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