Multiple Choice
Suppose a manager is deciding whether or not to purchase a piece of equipment to make an input internally and has completed the majority of the net present value (NPV) calculations. The manager has correctly calculated the NPV to be equal to: NPV = ($1.19 × Q) - $1,000,000, where Q is the annual quantity of the input the firm needs. In order for the NPV to be positive, the firm needs at least _______units of the input each year.
A) 369,566
B) 952,260
C) 890,562
D) 840,337
Correct Answer:
Verified
Correct Answer:
Verified
Q9: Accountants consider depreciation allowance as profit before
Q10: Operating profits omit interest payments.
Q11: Economies of scale are achieved is the
Q12: An immediate depreciation allowance is referred to
Q13: If a firm makes its own inputs
Q15: What is the future value of $500
Q16: When profits and costs occur in the
Q17: All else equal, the sooner a depreciation
Q18: If a bond offers $400 in interest
Q19: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB1687/.jpg" alt=" The above table