a) Hill Co. can further process Product O to produce Product P. Product O is currently selling for $60 per pound and costs $42 per pound to produce. Product P would sell for $82 per pound and would require and additional cost of $13 per pound to produce. The differential revenue of producing Product P is $22 per pound. True or False

b) If a proposed expenditure of $80,000 for a fixed asset with a 4-year life has an annual (each year of its 4-year life) expected net cash flow and net income of $32,000 and $12,000, respectively, the cash payback period is 2.5 years. True or False

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