19. The appropriate discount rate that analysts use in computing the present value of future cash flows is comprised of which of the following:

a. an increase reflecting the inflation expected to occur over the life of the project.

b. a risk factor reflecting the riskiness of the project

c. a pure rate of interest reflecting the productive capability of capital assets

d. all of the above.

20. A favorable materials price variance coupled with an unfavorable material usage variance would most likely result from:

1. Labor efficiency problems
2. The purchase and use of higher than standard quality material
3. The purchase and use of lower than standard quality material
4. Machine efficiency problem