The Following Table Shows the Cost of Producing Different Units

question 41

Multiple Choice

The following table shows the cost of producing different units of ball point pens by a firm. Table 7.1
Refer to Table 7.1.What is the marginal cost of producing the fourth and the fifth unit?

• A)$4
• B)$6
• C)$8
• D)$2
• E)$10

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Definitions:

MIRR

Modified Internal Rate of Return, a financial metric that accounts for the cost of capital and reinvestment of cash flows.

IRR

The interest rate at which the total present value of a project or investment's incoming and outgoing cash flows sum to zero.

WACC

A technique called Weighted Average Cost of Capital computes a firm’s cost of funds, taking into account the proportional weighting of various capital types.

NPV

Net Present Value represents a technique for assessing the profitability of a project or investment, utilized in the process of capital budgeting.