Use the Information for the Question(s)below

question 13

Multiple Choice

Use the information for the question(s) below.
The Aardvark Corporation is considering launching a new product and is trying to determine an appropriate discount rate for evaluating this new product.Aardvark has identified the following information for three single division firms that offer products similar to the one Aardvark is interested in launching:
-The unlevered cost of capital for Anteater Enterprises is closest to:

• A)10.1%.
• B)9.5%.
• C)9.9%.
• D)10.3%.

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Definitions:

Reduced Inventory

Reduced inventory involves minimizing the amount of goods or materials held in stock to lower costs, reduce waste, and increase efficiency in production and distribution processes.

JIT

Just-In-Time, an inventory management strategy to increase efficiency and decrease waste by receiving goods only as they are needed in the production process.

TPS

Toyota Production System, a manufacturing methodology focused on reducing waste and improving efficiency and quality.

Lean Systems

Lean systems are management philosophies that focus on minimizing waste within manufacturing systems while simultaneously maximizing productivity.