Capacity Requirements Planning (CRP) Is an Important Feature in MRP

question 21

True/False

Capacity requirements planning (CRP) is an important feature in MRP+.

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Definitions:

Net Cash Inflows

The total amount of cash received minus cash paid out over a specific period, not including non-cash expenses.

Straight-Line Method

A method of depreciation that allocates an equal portion of an asset’s cost to each year of its useful life.

Payback Period

denotes the length of time required to recoup the cost of an investment, helping investors understand the risk and liquidity of the project.

Simple Rate of Return

A method to estimate the profitability of an investment, calculated by dividing the net annual income by the initial investment cost.