If the Servicing Rate Increases to 16,the ________

question 4

Multiple Choice

If the servicing rate increases to 16,the ________.

• A)average number of customers in the system decreases by 1.8
• B)average number of customers in the queue increases by 1.7
• C)probability of the system being empty will reduce to 0.75
• D)probability that the system contains at least one customer will increase to 0.25

Calculate and analyze residual income.

Understand the concept of minimum required rate of return.

Evaluate investment opportunities in terms of residual income and ROI.

Assess the impact of new investments on overall company performance.

---

Definitions:

Sale Of Accounts Receivable

A financial transaction where a company sells its outstanding invoices to a third party at a discount, in order to receive immediate cash.

Commission Charged

A fee paid to an employee or agent for facilitating a sale, typically a percentage of the sale amount.

Factor

A financial company that purchases receivables from businesses, providing them with immediate cash.

Impairment

Impairment is a reduction in the recoverable value of an asset below its carrying value, leading to an expense in the income statement.