Use the Table for the Question(s)below

question 95

Multiple Choice

Use the table for the question(s) below.

-Visby Rides,a livery car company,is considering buying some new luxury cars.After extensive research,they come up with the above estimates of free cash flow from this project.Visby learns that a competitor is thinking of offering similar services,thus reducing Visby's sales.By how much could sales fall before the net present value (NPV) was zero,given that the cost of capital is 10%,and that cost of goods sold is 35% of revenues?

• A)by 12%
• B)by 18%
• C)by 24%
• D)by 22%
• E)by 31%

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Definitions:

First Date

An initial meeting between two individuals where they spend time together to assess mutual interest in pursuing a relationship.

Acquaintance

A person one knows slightly, but who is not a close friend.

Misogyny

The hatred of, contempt for, or prejudice against women or girls.

Hatred Of Women

Deep-seated aversion or hostility towards women, also known as misogyny.