The Golden Goose Is Considering a Project with an Initial

question 73

Multiple Choice

The Golden Goose is considering a project with an initial cost of $46,700.The project will produce cash inflows of $10,000 a year for the first two years and $12,000 a year for the following three years.What is the payback period?

• A)2.87 years
• B)3.23 years
• C)3.41 years
• D)3.79 years
• E)4.23 years

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Definitions:

Work Centre

is a specific physical location in a manufacturing facility where tasks related to production are carried out, often equipped with necessary machinery and labor.

Linear Programming

A mathematical technique for optimizing a linear objective function, subject to linear equality and linear inequality constraints.

Shortest Processing Time

A scheduling priority rule where tasks are ordered and selected for execution based on the shortest amount of time they will take to complete.

Dispatch Rule

A guideline or criterion used to prioritize and sequence tasks or jobs, often in a manufacturing or operational context, to optimize performance.