The First Product Took 10 Hours to Build and the Learning

question 79

Multiple Choice

The first product took 10 hours to build and the learning curve is estimated to be 90%. How long will it take to make the eighth unit?

• A) 10 hours
• B) 9 hours
• C) 8.1 hours
• D) 7.29 hours
• E) none of these

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Definitions:

Long Term Liability

A financial obligation of a company that is due for a period exceeding one year, including bonds payable, long-term loans, lease obligations, and pension obligations.

Future Value

The amount of money an investment will grow to over a period of time at a specified interest or growth rate.

Future Value

The estimated amount that an investment will grow to over a period of time at a specified rate of interest.

Compounded Annually

Refers to the process of earning interest on both the initial principal and the accumulated interest from previous periods, calculated once per year.