Panjandrum Industries, a Manufacturer of Industrial Piping, Is Evaluating Whether

question 39

Multiple Choice

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 0.8%
• B) at least 1.4%
• C) at least 1.5%
• D) at least 2.0%

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Definitions:

Deadbeat Dad

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Instrumental Role

The part played by an individual in a societal structure, focused on goal-oriented tasks, especially in a family setting, traditionally associated with the breadwinner or provider.

Gender Norms

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