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You Are Considering a Project and Are Concerned About the Reliability

Question 49

Multiple Choice

You are considering a project and are concerned about the reliability of the cash flow forecasts. To reduce any potentially harmful results from accepting this project, you should consider:


A) lowering the degree of operating leverage.
B) lowering the contribution margin per unit.
C) increasing the initial cash outlay.
D) increasing the fixed costs per unit.
E) lowering the operating cash flow.

Correct Answer:

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