The Following Table Shows the Relationship Between the Speed of a Computer's

question 59

Multiple Choice

The following table shows the relationship between the speed of a computer's CPU and the benefits and costs.Assume that all other features of the computer are the same,i.e. ,CPU speed is the only source of variation.

-The marginal cost of upgrading from a 2 GHz to a 3 GHz computer is

• A) $600.
• B) $500.
• C) $400.
• D) $200.
• E) $100.

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Definitions:

What-if Analysis

A process or method used to evaluate the potential outcomes or impacts of different scenarios or decisions by changing variables and observing the resulting changes.

Base Case

The set of assumptions, inputs, and data considered in a financial model or analysis that serves as a starting point for scenario analysis.

Forecast Cash Flows

The projection of a company or project's future financial liquidity over a specific period.

Capital Rationing

Capital Rationing is the process of allocating limited capital resources among different projects or divisions within an organization, prioritizing them based on their potential returns or strategic importance.