Use the Table for the Question(s)below

question 86

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

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Definitions:

Statistical Techniques

Methods used in data analysis to summarize, describe, and infer patterns or relationships within data sets.

Part-time Staff

Employees who work less than the standard full-time hours, typically offering flexibility and reduced hours.

Full-time Employees

Workers who are considered permanent staff and typically work a standard workweek.

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Periods when an economy experiences a decline in financial performance, marked by decreased industrial activity, consumer spending, and increased unemployment.