Which one of the following types of operations would be subject to the most political
risk if the operation were conducted outside of a firm's home country?
A. accounting and payroll functions
B. partial assembly of components manufactured in the firm's home country
C. military weapons manufacturing
D. packing materials manufacturing for use by the home country firm
E. production of minor parts, such as nuts and bolts, for use by the home country firm
Scenario analysis is defined as the:
A. determination of the initial cash outlay required to implement a project.
B. determination of changes in NPV estimates when what-if questions are posed.
C. isolation of the effect that a single variable has on the NPV of a project.
D. separation of a project's sunk costs from its opportunity costs.
E. analysis of the effects that a project's terminal cash flows has on the project's NPV.
Graphing the crossover point helps explain:
A. why one project is always superior to another project.
B. how decisions concerning mutually exclusive projects are derived.
C. how the duration of a project affects the decision as to which project to accept.
D. how the net present value and the initial cash outflow of a project are related.
E. how the profitability index and the net present value are related.
Under your current cash sales only policy you sell 132 units a month for a total sales
value of $9,240. Your variable cost per unit is $44 and your monthly interest rate is 1
percent. Based on a recent survey, you believe that you can sell an additional 22 units