Use the Table for the Question(s)below

question 95

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 35% of revenues?

• A)by 12%
• B)by 18%
• C)by 24%
• D)by 22%
• E)by 31%

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Definitions:

Health Action Process Approach Model

A psychological theory that describes the process of how individuals intend to achieve and maintain health-related behaviors.

Transition

The process or a period of changing from one state or condition to another in any aspect of life or environment.

Preparation Stage

A phase in the Transtheoretical Model of change where individuals intend to take action to address a behavior or problem within the near future.

Action Stage

A phase in the transtheoretical model of behavior change where individuals actively implement strategies to change behavior.