A Ball-Bearing Factory Makes 4,000,000 ±5% Ball Bearings Each Day

question 6

Multiple Choice

A ball-bearing factory makes 4,000,000 ±5% ball bearings each day. Which option below represents the minimum and maximum number of ball bearings actually produced each day?

• A) [3,600,000, 4,400,000]
• B) [3,900,000, 4,100,000]
• C) [3,800,000, 4,200,000]
• D) [3,500,000, 4,500,000]

---

Definitions:

Method

A systematic way of accomplishing something. In a financial context, this could refer to a specific approach or procedure adopted for accounting or analysis purposes.

Average Rate of Return Method

A method of evaluating capital investments by calculating the average annual profit expected from the investment and dividing it by the initial investment cost.

Present Value

The contemporary valuation of a future money sum or cash flow series, based on a predetermined return rate.

Time Value

The idea that having money now is more valuable than having the same sum in the future because of its ability to generate earnings.