Which of the following is TRUE of sensitivity analysis?

Hoosier Inc. makes and sells its own widgets.  Its selling price is $35.00 per unit, with a contribution margin of $14.00 per unit. Hoosier has received a special order from a competitor (Purdue) to make 12,000 units.  Hoosier only has enough idle capacity to make 8,000 additional units.  Purdue insists that Hoosier deliver ALL 12,000 units, NOT 8,000 units. After detailed analysis, Hoosier knows that for this decision, its relevant manufacturing costs are $10.00 per unit. If Hoosier accepts this opportunity, what is the minimum price it should charge for these 12,000 units in order to cover all its costs? (Round your calculations to the nearest $0.01 (cent) and select the answer closest to your calculations.)

Often, the implementation of a new project will require additional investment in working capital. Which of the following is FALSE with respect to working capital?

What is the payback period in years for a $33,000 project that is expected to return $8,000 for the first three (3) years and $12,000 per year thereafter? (Round your answer to two decimal places)

Which of the following is TRUE of sensitivity analysis?

Often, the implementation of a new project will require additional investment in working capital. Which of the following is FALSE with respect to working capital?

Which of the following statements is/are TRUE with respect to the relevance of cash flows in capital budgeting decisions? I. Initial project cash outflows may include the initial investment and any working capital required to kick-start the investment. II. Operational cash flows include cash inflows from sales or inflows from increased operating expenses, as well as cash outflows like preventative maintenance and environmental costs. III. Cash flows at disposal (end of project) may include cash inflows such as the return of any working capital and the sale of equipment at salvage value.  

Hoosier Inc. makes and sells its own widgets.  Its selling price is $35.00 per unit, with a contribution margin of $14.00 per unit. Hoosier has received a special order from a competitor (Purdue) to make 12,000 units.  Hoosier only has enough idle capacity to make 8,000 additional units.  Purdue insists that Hoosier deliver ALL 12,000 units, NOT 8,000 units. After detailed analysis, Hoosier knows that for this decision, its relevant manufacturing costs are $10.00 per unit. If Hoosier accepts this opportunity, what is the minimum price it should charge for these 12,000 units in order to cover all its costs? (Round your calculations to the nearest $0.01 (cent) and select the answer closest to your calculations.)

The opportunity cost of making a component part in a factory with no excess capacity is the:

What is the payback period in years for a $33,000 project that is expected to return $8,000 for the first three (3) years and $12,000 per year thereafter? (Round your answer to two decimal places)