Use the Information for the Question(s) Below

question 1

Multiple Choice

Use the information for the question(s) below.
Shepard Industries is evaluating a proposal to expand its current distribution facilities. Management has projected the project will produce the following cash flows for the first two years (in millions) .

-The incremental EBIT for Shepard Industries in year two is closest to:

• A) $415
• B) $875
• C) $595
• D) $510

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Definitions:

Supply

The total amount of a good or service available for purchase at any given price.

Suppliers

Entities that provide goods or services to consumers or other businesses in the market.

Supply

The complete quantity of a particular product or service accessible to buyers.

Supply Curve

A graphical representation showing the relationship between the price of a good and the quantity of the good that producers are willing to supply.