What Was One of the Advantages of the "American System

question 62

Multiple Choice

What was one of the advantages of the "American system" of manufacturing?

• A) Inventors would have more time to develop their inventions slowly.
• B) Manufacturers would have a convenient way of excluding outside investors.
• C) Foreigners would have no way of copying American machines.
• D) Damaged parts could be replaced easily.
• E) American craftsmen could demonstrate their skills to the British.

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Definitions:

Present Value Index

A financial calculation that helps to evaluate the profitability of an investment or project by considering the present value of expected cash flows.

Net Present Value Analysis

A method used to evaluate the profitability of an investment or project by calculating the difference between the present value of cash inflows and outflows over time.

Capital Investment

Funds invested in a business or project for the purpose of furthering its objectives, typically involving the purchase of physical assets.

Cash Payback Period

The period of time required for the cash inflows from a project or investment to repay the initial cash outlay.