While Having a Discussion, Technician a Says That You Should

question 17

Multiple Choice

While having a discussion, Technician A says that you should not use a regular hose clamp to replace a boot clamp. Technician B says that in a pinch, a nylon tie strap can be used for a day or two until a clamp can be purchased. Who is correct?

• A)A only
• B)B only
• C)Both A and B
• D)Neither A nor B

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Definitions:

Internal Rate of Return Method

A capital budgeting method that calculates the return on investment by setting the net present value of cash flows equal to zero.

Present Value

Today's worth of a forthcoming sum of money or series of cash payments, considering a designated rate of return.

Capital Investment Analysis

The process of evaluating and comparing potential investments or expenditures to determine their profitability and financial impact on the business.

Net Present Value Method

A method of evaluating the feasibility of projects or investments by calculating their net present value using a discount rate.