Use the Table for the Question(s)below

question 83

Multiple Choice

Use the table for the question(s) below.
Consider a project with the following cash flows:

-Given the cash flows in the table above,the point at which the NPV profile crosses the vertical axis is:

• A)$6000
• B)-$867
• C)22.0%
• D)15.0%
• E)$0

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Definitions:

Direct Materials Cost

The expenditure on raw materials that can be directly attributed to the production of a specific product.

Direct Labour-Hours

The hours worked directly on the production of goods or services by employees.

Job-Order Costing System

A job-order costing system is an accounting method that assigns manufacturing costs to individual products or job orders based on the specific resources each job consumes.

Process Costing

An accounting methodology used in industries where production is continuous, assigning costs to units of product based on the process they have undergone.