A Manufacturing Company Is Thinking About Building a New Factory

question 12

Multiple Choice

A manufacturing company is thinking about building a new factory.The factory,if built,will yield the company $300 million in 7 years,and it would cost $220 million today to build.The company will decide to build the factory if the interest rate is

• A)no less than 4.53 percent.
• B)no greater than 4.53 percent.
• C)no less than 5.81 percent.
• D)no greater than 5.81 percent.

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Definitions:

Iron Law Of Oligarchy

The theory that all forms of organization, regardless of how democratic they are at the start, will eventually and inevitably develop oligarchic tendencies.

Status Generalization

The process by which individuals extrapolate others' broader social status based on limited or irrelevant information.

Sportscaster

A journalist who reports and provides commentary on sports events, either on television or radio.

High Status

Occupying a position of superior rank, prestige, or respect within a social hierarchy.