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Table 3-29 Juanita and Shantala Run a Business That Programs and Tests

question 36

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Table 3-29
Juanita and Shantala run a business that programs and tests cellular phones. Assume that Juanita and Shantala can switch between programming and testing cellular phones at a constant rate. The following table applies.
Table 3-29 Juanita and Shantala run a business that programs and tests cellular phones. Assume that Juanita and Shantala can switch between programming and testing cellular phones at a constant rate. The following table applies. ​   -Refer to Table 3-29. Juanita's opportunity cost of testing one cellular phone is programming A) 0.133 cellular phones and Shantala's opportunity cost of testing one cellular phone is programming 2.5 cellular phones. B) 0.133 cellular phones and Shantala's opportunity cost of testing one cellular phone is programming 0.4 cellular phones. C) 7.5 cellular phones and Shantala's opportunity cost of testing one cellular phone is programming 2.5 cellular phones. D) 7.5 cellular phones and Shantala's opportunity cost of testing one cellular phone is programming 0.4 cellular phones.
-Refer to Table 3-29. Juanita's opportunity cost of testing one cellular phone is programming


Definitions:

Simple Rate of Return

A method to calculate the return on investment by dividing the annual incremental net operating income by the initial investment's cost.

Discount Rate

The discount rate that adjusts future cash flows to their current worth, accounting for the time value of money.

Investment Required

The total amount of capital needed to start or expand a business or project, encompassing all necessary expenses.

Annual Cash Inflows

The total amount of money received by a business within one fiscal year from its operations, investments, and financing activities.

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