According to Norstrom’s criterion, there is only one positive rate of return value in a cash flow series when: (a) The cumulative cash flow starts out positive and changes sign only once (b) The cumulative cash flow starts out negative and changes sign only once (c) The cumulative cash flow total is greater than zero (d) The cumulative cash flow total is less than zero

An investment of $60,000 ten years ago resulted in uniform income of $10,000 per year for the 10-year period. The rate of return on the investment was closest to: (a) 10. 6% per year (b) 14. 2% per year (c) 16. 4% per year (d) 18. 6% per year (e) Any of the above b d

I think these two questions are testing a similar type of concept. Why don't we include the 4.3 in q1 or 310 in q2 as cost and subtract it

A manufacturer sells a particular product in both Brazil and the U.S.  In Brazil, the manufacturer has been selling 4,900 units per year of the product at a price of $200 and a contribution margin of 25 percent. For sales of this product in Brazil, calculate the breakeven sales level for a $20 price increase.  Show your work. In the U.S., the manufacturer’s price for this product is $400 and the contribution margin is 50 percent.  The manufacturer knows that, because of gray market commerce, every one-unit change of sales of this product in Brazil leads to a 0.15-unit sales change in the opposite direction in the U.S.  Given this information, recalculate the breakeven sales level in Brazil described in Part a. Show your work. Using the course material, describe the concept of a price corridor.  Then explain how the difference between the breakeven you calculated in Part (b) and the one you calculated in Part (a) is helpful for applying the price-corridor concept in this situation.