Suppose That Tip Can Write 3 Pages of Term Papers

question 3

Multiple Choice

Suppose that Tip can write 3 pages of term papers or solve 12 workbook problems in an hour, while Spot can write 4 pages of term papers or solve 12 workbook problems in an hour.If they each decide to work a total of 7 hours and to share their output, then if they produce as many pages of term paper as possible given that they produce 18 workbook problems,

• A)Spot will write term papers only and Tip will do workbook problems only.
• B)Tip will spend all of his time writing term papers and Spot will spend some time at each task.
• C)Spot will spend all of his time writing term papers and Tip will spend some time at each task.
• D)both students will spend some time at each task.
• E)Tip will write term papers only and Spot will do workbook problems only.

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Definitions:

IRR

A metric used in financial analysis to estimate the profitability of potential investments, it represents the annualized effective compounded return rate.

Sunk Costs

Costs that have already been incurred and cannot be recovered, and should not influence future business decisions.

Initial Period Cash

The amount of cash available at the beginning of a financial period or the start of a project.

Project Termination

The process of concluding or finalizing a project after its objectives have been achieved or it has been determined that objectives cannot be achieved.