Author Question: The advantages of NPV are all of the following EXCEPT A) it recognizes the timing of the benefits ... (Read 49 times)

audragclark

  • Hero Member
  • *****
  • Posts: 579
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

  • Sr. Member
  • ****
  • Posts: 337
Answer to Question 1

B

Answer to Question 2

D



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

In 1886, William Bates reported on the discovery of a substance produced by the adrenal gland that turned out to be epinephrine (adrenaline). In 1904, this drug was first artificially synthesized by Friedrich Stolz.

Did you know?

The liver is the only organ that has the ability to regenerate itself after certain types of damage. As much as 25% of the liver can be removed, and it will still regenerate back to its original shape and size. However, the liver cannot regenerate after severe damage caused by alcohol.

Did you know?

Approximately 500,000 babies are born each year in the United States to teenage mothers.

Did you know?

The word drug comes from the Dutch word droog (meaning "dry"). For centuries, most drugs came from dried plants, hence the name.

Did you know?

In most cases, kidneys can recover from almost complete loss of function, such as in acute kidney (renal) failure.

For a complete list of videos, visit our video library