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    Fundamentals of Corporate Finance Study Set 22
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    Exam 11: Project Analysis and Evaluation
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    Suppose That a Project Has a DOL = 0
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Suppose That a Project Has a DOL = 0

Question 21

Question 21

Multiple Choice

Suppose that a project has a DOL = 0.75. If the quantity being produced increases from 96 to 100, what is the expected percentage change in operating cash flow?


A) -2.5%
B) 3.1%
C) 4.2%
D) 5.5%
E) 6.2%

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