Question: Forecasting risk is defined as the possibility that: a. Some proposed projects will be rejected. b. Some proposed projects will be temporarily delayed. C. Some

projects will be rejected. b. Some proposed projects will be temporarily delayed.

C. Some projects will be mutually exclusive. d. Some projects will have

a long investment horizon. e. Incorrect decisions will be made due to

Forecasting risk is defined as the possibility that: a. Some proposed projects will be rejected. b. Some proposed projects will be temporarily delayed. C. Some projects will be mutually exclusive. d. Some projects will have a long investment horizon. e. Incorrect decisions will be made due to erroneous cash flow estimates. 7. Continue with problem 6,is the marginal cost of shoes if the firm produces 120,000 pairs? a. $14.08 b. $24.86 C. $38.94 d. $51.86 e $77.62 6. Rockfun Inc. manufacture mount climbing shoes for $24.86 per pair in variable raw material costs and S14.08 per pair in variable labor costs. Fixed costs are $1.550.00 is the a. $14.08 b. $24.86 $38.94 d. $51.86 e. $77.62 5. Scenario analysis helps you determine the: a. a range of possible outcomes given possible ranges for every variable including the best and the worst possible situations. b. degree to which a project is reliant upon the variable costs c. degree to which a project is reliant upon the fixed costs. d. degree to which the net present value reacts to changes in a single variable. e. level of variable costs in relation to the fixed costs of a project

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