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:

Hackathon

An event, often competitive, where programmers, designers, and others involved in software development collaborate intensively on software projects.

Skunkworks

Project initiated by a company employee who conceives the idea, convinces top management of its potential, and then recruits human and other resources from within the firm to turn it into a commercial project.

Less Expensive

Refers to products or services offered at a lower price compared to other similar offerings, often aimed at attracting cost-conscious consumers.