Tech a Says That Wheel Bearings Need to Be Replaced

question 28

Multiple Choice

Tech A says that wheel bearings need to be replaced as a set: bearing and race. Tech B says that the wheel bearings and races on both sides of the vehicle must be replaced if one side fails. Who is right?

• A) Tech A
• B) Tech B
• C) Both A and B
• D) Neither A nor B

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Definitions:

Incremental Working Capital

The additional amount of net working capital that a company needs to invest in a project.

Opportunity Cost

The value of the best alternative that is foregone when a particular course of action is chosen.

Incremental Cash Flow

is the additional cash flow generated by a company from a new project or investment, used to analyze the profitability of taking on the new project.

Sunk Cost

A cost that has already been incurred and cannot be recovered, which should not influence future business decisions.