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earnstyle [38]
3 years ago
11

Joe Jones, plant manager at Waco Industries, told a friend that if it was necessary, his plant could produce 1,000 items a day i

f all conditions were just right. Joe is describing his plant's:
a. Effective capacity.
b. Yield rate.
c. Utilization.
d. Maximum capacity.
Business
1 answer:
Paraphin [41]3 years ago
7 0

Answer:

Correct option is (d)

Explanation:

Capacity refers to the amount of goods that a plant or organization can produce. Maximum capacity refers to the total number of goods produced at maximum efficiency.

In this case, Joe's plant could produce 1,000 items if all conditions are met, which means when the plant is at its highest efficiency. This states the maximum capacity of the plant.

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Free_Kalibri [48]

Answer:

A) the discounted payback period decreases as the discount rate increases

Explanation:

The discounted payback period is used to determine the profitability of an investment project.

A not discounted payback period is how long does it take for the cash flows of a project to recoup the investment's cost without considering the value of money in time. By applying a discount to the cash flows, the discounted period will more accurately measure the length of time needed to recoup an investment using current dollars.

The higher the discount rate, the longer it will take for the cash flows to cover the investment's cost, so if the discount rate lowers, then the discounted payback period will be shorter.

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