If Money If Worth $1,500 Now and $1,540 in 90

question 113

Multiple Choice

If money if worth $1,500 now and $1,540 in 90 days, determine the rate of return that an investor would be indifferent between the two options.

• A) 12.45%
• B) 11.23%
• C) 10.81%
• D) 9.63%
• E) 8.85%

---

Definitions:

Manufacturing Overhead

Indirect costs associated with manufacturing, such as utilities, maintenance, and salaried personnel expenses, which are not directly traceable to a specific product.

Direct Labour

Represents the wages paid to workers directly involved in the production of goods or the provision of services.

Direct Material

The essential components used in the manufacture of a product, directly linked to the production process.

Production Budget

A financial plan that estimates the number of units to be produced to meet sales demands and inventory policies.