As Distribution Centers Are Added

question 9

Multiple Choice

As distribution centers are added:

• A) the cost of truckload shipments increase
• B) the cost of truckload shipments decrease
• C) the total cost of transportation increases
• D) the costs of LTL shipments to customers increase

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Definitions:

Average Rate of Return

A profitability gauge for investments, determined by dividing the initial investment cost into the average yearly profit.

Present Value Factor

A factor used to calculate the present value of a cash flow to be received in the future.

Cash Payback Period

The period of time required for the return on an investment to "repay" the original capital cost of the investment.

Desired Rate

The desired rate often refers to the target interest rate set by central banks, or it could imply the expected return rate on investments by individuals or businesses.