DuLarge Marine Manufactures Diesel Engines for Shrimp Trawlers and Other

question 101

Multiple Choice

DuLarge Marine manufactures diesel engines for shrimp trawlers and other small commercial boats. One of their CNC machines has caused several problems. Over the past 30 weeks, the machine has broken down as indicated below. What is the expected number of breakdowns per week?

• A) 1
• B) 2
• C) 6
• D) 10
• E) 30

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Definitions:

Callable Bonds

Bonds that can be redeemed by the issuer prior to their maturity date at a specified call price.

Redeemable

Refers to an item or financial instrument that can be converted into cash or another financial instrument.

Bond Indenture

The contract between a corporation issuing bonds and the bondholders.

Amortization

The process of gradually writing off the initial cost of an intangible asset over a fixed period of time in a manner similar to depreciation of physical assets.