Use the Figure for the Question(s) Below

question 32

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

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Definitions:

Seventeenth Amendment

Progressive reform passed in 1913 that required U.S. senators to be elected directly by voters; previously, senators were chosen by state legislatures.

Federal Income Tax

A tax levied by the United States federal government on the annual earnings of individuals, corporations, trusts, and other legal entities.

U.S. Senators

Elected officials who serve in the United States Senate, one of the two chambers of the United States Congress, representing their respective states and responsible for making federal laws.

Progressive Reformers

Early 20th-century activists in the United States who sought to address social inequities, corruption, and economic issues through government intervention.