Note the Expression: Y = A/x³

question 3

Multiple Choice

Note the expression: y = A/x³.Which statement is most consistent with this expression?

• A)y is less than A.
• B)If x is halved,y is multiplied by eight.
• C)If x is doubled,y is multiplied by a factor of 8.
• D)y is greater than x.

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Definitions:

After-Tax Discount Rate

The interest rate used in discounting cash flows that takes into account the tax implications of the investment.

Incremental Sales

The additional revenue generated from a specific business decision or action.

Cash Operating Expenses

Expenses incurred during the normal operation of a business that affect its cash position, such as rent, utilities, and payroll, excluding non-cash expenses like depreciation.

Working Capital

The difference between a company's current assets and its current liabilities, indicating the liquidity and operational efficiency of the business.