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Is the following statement true or false? “When comparing multiple mutually exclusive alternatives, the alternative with the highest rate of return (ROR) should be selected.”

Is the following statement true or false? “Nominal interest rates are widely used in financial documents and should be used in economic equivalence calculations.”

Show your intermediate steps. A university needs funding to cover future scholarships.  The costs are expected to be $100,000 each year for the first ten years and $200,000 each year after that (perpetually or lasting forever).  If the interest rate is 4% per year, how much does the university need now?

Show only the final result. What is the capital recovery cost of purchasing a truck with an initial cost of $70,000, an annual operating cost of 5,000, and an estimated salvage value of $10,000 after five years of use? Interest rate is 6% per year. Present your final answer in whole dollars.

Equilibrium calculation/concept question 6

Equilibrium calculation/concept question 10

Equilibrium calculation/concept question 9

Equilibrium calculation/concept question 11

A production manager is determining the number of machines (M) required for a multi-product process. The annual demand (D) is 4,000 units, processing time (p) is $1.2 hours per unit, average lot size (Q) is 40 units, and setup time (s) is 3 hours per lot. The facility operates 2,000 hours per year (N) and desires a 15% capacity cushion (C). How many machines are required?

A warehouse manages an average inventory (L) of 450 units. The throughput rate is 30 units per day. According to Little’s Law, how long does a unit typically spend in the system (W)?