Use the Table for the Question(s)below

question 108

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 45% of revenues?

• A)by 12%
• B)by 18%
• C)by 24%
• D)by 26%

---

Definitions:

Code Changes

Modifications or updates made to a software's source code to add new features, fix bugs, or improve performance.

Errors

Mistakes or discrepancies that occur in computational processes, programs, or calculations.

Lines of Code

A measure of the size of a computer program by counting the number of lines in its source code.

Professional Programmers

Skilled individuals who write, test, debug, and maintain the source code of computer programs, specializing in different coding languages and development methodologies.