Figure 4.1 -A Manager Weighs Three Options for Capacity Cushion as Depicted

question 41

Multiple Choice

Figure 4.1

-A manager weighs three options for capacity cushion as depicted in Figure 4.1. If the dollar amounts expressed in the figure are cash flows, what is the value of the optimal decision?

• A) $11,700
• B) $11,500
• C) $12,300
• D) $10,500