Use the Following to Answer Question

question 168

Multiple Choice

Use the following to answer question:
-(Table: Demand for Lenny's Coffee) Use Table: Demand for Lenny's Coffee.Lenny's Café is the only source of coffee for hundreds of miles in any direction.If Lenny increases the quantity sold from 5 cups to 6,his marginal revenue will be:

• A)$4.
• B)$24.
• C)-$1.
• D)$5.

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Definitions:

Payback

Payback is the period of time required for the return on an investment to "pay back" the sum of the original investment, often used as a measure of investment risk.

Cash Flow

Cash flow signifies the net amount of cash and cash-equivalents being transferred into and out of a business, crucial for assessing its liquidity, flexibility, and overall financial performance.

Project's Payback

A calculation that determines the duration required for an investment to generate cash flows or profits enough to recover the initial investment cost.

WACC

Weighted Average Cost of Capital; the average rate of return a company must pay its security holders to finance its assets.