You Take a Trip by Air That Involves Three Independent

question 105

Multiple Choice

You take a trip by air that involves three independent flights. If there is a 90 percent chance each specific leg of the trip is done on time, what is the probability all three flights are late?

• A) 0.729
• B) 0.810
• C) 0.270
• D) 0.271
• E) 0.001

---

Definitions:

Lockbox System

A service provided by banks to process payments by collecting and depositing checks into the company's account quickly.

NPV

Net Present Value (NPV) is a method used in capital budgeting to determine the value of an investment by calculating the present value of expected future cash flows using a specific discount rate.

Cash Concentration Accounts

Bank accounts used by companies to concentrate cash from multiple accounts into one for efficient management and utilization.

Zero-Balance Accounts

Banking accounts that are maintained at a zero balance and have funds automatically transferred from a master account in the exact amount needed for specific transactions.