Hans Can Do 4 Loads of Laundry and Type 6

question 51

Multiple Choice

Hans can do 4 loads of laundry and type 6 pages per hour. Heidi can do 12 loads of laundry and type 8 pages per hour. Hans's opportunity cost of typing one page is:

• A) equal to 12 loads of laundry.
• B) equal to 8 loads of laundry.
• C) equal to 3/2 of a load of laundry.
• D) equal to 2/3 of a load of laundry.
• E) impossible to compute without additional information.

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Definitions:

Cash Flows

The inflows and outflows of cash and cash equivalents, representing the operating, investing, and financing activities of an entity.

Net Present Value

The difference between the present value of an investment project’s cash inflows and the present value of its cash outflows.

Internal Rate

Internal Rate, often referred to as Internal Rate of Return (IRR), is the rate of growth a project is expected to generate, used in capital budgeting to estimate the profitability of potential investments.

Cash Flows

The movement of money into and out of a business or project, considered vital for assessing the financial health of an entity.