Consequence Analysis Will Aid in Preparation of

question 127

Multiple Choice

Consequence analysis will aid in preparation of

• A) Risk ranking of equipment
• B) To understand the probability of failures
• C) To understand about equipment history

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Definitions:

Real Rate of Return

The real rate of return is the annual percentage profit earned on an investment, adjusted for changes in the price level due to inflation or deflation.

Nominal Return

The return on an investment without adjusting for inflation, representing the raw earnings or loss.

Inflation

The rate at which the general level of prices for goods and services is rising, and subsequently, purchasing power is falling.

Indifference Curve

A graph showing different combinations of two goods that provide equal satisfaction or utility to a consumer.