Use the Table for the Question(s)below

question 82

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) .It is thought that if marketing expenses are increased by 40%,then revenues will rise.By how much will revenues have to rise for the net present value (NPV) of the project to increase?

• A)at least 2.0%
• B)at least 2.9%
• C)at least 3.2%
• D)at least 3.8%
• E)at least 4.1%

---

Definitions:

Oligopoly

A market form characterized by a small number of firms controlling a large market share, often leading to limited competition.

Interdependence

A situation in which two or more entities are dependent on each other for resources, information, or transactions.

Rivals

Competitors who are in direct competition with one another, vying for the same market share or resources.

Interdependent

A situation where the outcomes or decisions of two or more entities are dependent on each other.