Thanks to a Generous and Eccentric Donor, the School of Business

question 82

Multiple Choice

Thanks to a generous and eccentric donor, the school of business has 3 fax machines.The toner in each machine needs to be changed after about 5 hours of use.There is one unit secretary who is responsible for the fax machine maintenance.It takes him 15 minutes to replace the toner cartridge.What is the average number of fax machines in the system?

• A).0142 fax machine
• B).1563 fax machine
• C).0249 fax machine
• D).2749 fax machine

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Definitions:

Tax Shield Approach

A method used in financial analysis to account for the benefits of certain deductions, such as interest or depreciation, which reduce taxable income and thus tax liability.

Operating Cash Flow

Cash generated from the normal operating activities of a business over a specific period, excluding capital expenditures and investments.

Depreciation

The methodical distribution of the expense of a physical asset across its lifespan, representing its use, deterioration, or becoming outdated.

Perfect Vacuum

An idealized state with no matter or particles present, and hence no pressure or air, which is physically unattainable but used as a baseline or reference point.