Use the Table for the Question(s)below

question 69

Multiple Choice

Use the table for the question(s) below.

-Panjandrum Industries,a manufacturer of industrial piping,is evaluating whether it should expand into the sale of plastic fittings for home garden sprinkler systems.It has made the above estimates of free cash flows resulting from such a decision (all quantities in millions of dollars) .There are some concerns that estimates of manufacturing expenses may be low,due to the rising cost of raw materials.What is the break-even point for manufacturing expenses,if all other estimates are correct and the cost of capital is 10%?

• A)$0.78 million
• B)$0.88 million
• C)$0.97 million
• D)$1.22 million
• E)$1.36 million

---

Definitions:

Human-Relations Approach

A management theory focusing on the importance of interpersonal relationships and motivation for enhancing worker productivity.

Challenging Jobs

Employment positions that require a high level of skill, effort, or complexity, providing opportunities for growth and learning.

Job Satisfaction

The level of contentment employees feel about their work, which can influence their performance and overall company morale.

Job Performance

The level of effectiveness with which an individual executes their job-related tasks, responsibilities, and duties.