Figure 5-6 -Refer to Figure 5-6.Using the Midpoint Method,the Price Elasticity of Method,the

question 182

Multiple Choice

Figure 5-6

-Refer to Figure 5-6.Using the midpoint method,the price elasticity of demand between point B and point C is

• A) 0.5.
• B) 0.75.
• C) 1.0.
• D) 1.3.

Comprehend the impact of taxes and depreciation on project cash flows.

Understand the importance of incorporating working capital changes in project evaluation.

Recognize the importance of incremental cash flow principles in evaluating projects.

Understand the treatment and implications of depreciation for tax purposes.