Klott Company Used Scenario Analysis and Estimated Its Expected Net

question 2

Multiple Choice

Klott Company used scenario analysis and estimated its expected net present value (NPV) as $10,300 and expected standard deviation (σ) as $12,083. The coefficient of variation (CVNPV) of Klott's NPV is _____.

• A) 0.25
• B) 1.2
• C) 5.6
• D) 1.17
• E) 0.45

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Definitions:

Marginal Product

The additional output resulting from the use of one more unit of a variable input, holding all other inputs constant.

Least Costly

The most economical or budget-friendly option among a set of alternatives.

Elastic Demand

A situation in which the demand for a product is sensitive to price changes, indicated by a greater change in quantity demanded.

Labor Costs

The total amount of money businesses have to spend on paying their employees, including wages, salaries, and benefits.