Use the Figure for the Question(s) Below

question 78

Multiple Choice

Use the figure for the question(s) below.

-The graph above shows the break-even analysis for the cost of making a certain good.Based on this chart,which of the following is true?

• A) The net present value (NP
• V) of the project increases with increased cost of goods sold.
• B) The project should not be undertaken if the predicted cost of goods sold is less than $110.
• C) The net present value (NP
• V) of the project will be positive if the cost of good sold is greater than $110.
• D) If the good costs $110 to make, the net present value (NP
• V) of the project will be zero.
• E) The cost of goods sold should not be a factor in deciding whether to undertake the project.