7A purchasing make-or-buy model consists of a unit variable cost for an outsourc

Question

7A purchasing make-or-buy model consists of a unit variable cost for an outsource vendor and a fixed-plus unit variable cost for the in-house "make" option. As the fixed cost decreases, what happens? Point of indifference increases with respect to volume. b Nothing happens e Point of indifference decreases with respect to volume. e None of the above. Refer to the figure below. What is the function? d The sell option becomes more attractive 8 a exponent b linear natural log d power e polynomial 9 Refer to the figure below. What is the function? a exponent b linear c natural log d power e polynomial The IRR ofa cash flow sequence is 10%, what is true? 10 The NPV with a discount rate of 10% is zero. b The NPV with a discount rate of 10% must be non-zero. c Since the result is positive, it is greater than the NPV at the hurdle rate. d No conclusions can be made, since the interest rate was not stated. e None of the above.

Explanation / Answer

Kindly post 1 question per post. Here' the answer to the question:

Q8. This is a parabolic curve , opening downawards. So, it is a polynomial curve
e. is the correct option

Q9. This is a natural log curve, where is initially the y rises hugely w.r.t. x and then the growth tapers off with increasing x
c is correct option
Q9.

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