Consider the Following Information About a Business Diane Opened Last

question 171

Multiple Choice

Consider the following information about a business Diane opened last year: price = $20, quantity sold = 25,000; implicit cost = $255,000; explicit cost = $360,000. Assuming that all relevant costs and revenue are noted, what was Diane's economic profit?

• A)$140,000
• B)-$115,000
• C)-$140,000
• D)$220,000
• E)$245,000

Distinguish between different capital budgeting evaluation techniques and their application contexts.

Understand the concept of working capital management in project evaluation.

Apply depreciation methods in the computation of cash flows for capital budgeting.

Estimate additional revenue or cost savings required to make an investment project financially attractive.

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Definitions:

Coefficient Of Variation

A measure used to indicate the relative variability of a data set, expressed as a percentage of the mean.

Ages

Refers to the length of time that an individual, object, or phenomenon has existed.

Volunteers

Individuals who offer themselves for a service or undertaking willingly and without pay.

Standard Deviation

A measure of the amount of variation or dispersion of a set of values, indicating how much the values in a data set differ from the mean.