Use the Figure for the Question(s)below

question 21

Multiple Choice

Use the figure for the question(s) below.
-The graph above shows the break-even analysis for the cost of making a certain good. Based on this chart, which of the following is true?

• A)The project should not be undertaken if the predicted cost of goods sold is less than $110.
• B)The net present value (NP
• V)of the project increases with increased cost of goods sold.
• C)If the good costs $110 to make, the net present value (NP
• V)of the project will be zero.
• D)The net present value (NP
• V)of the project will be positive if the cost of goods sold is greater than $110.

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