As the Production Manager of HPG, Inc

question 74

Multiple Choice

As the production manager of HPG, Inc., you have received an offer from the supplier who provides the wires used in headsets. Due to poor planning, the supplier has an excess amount of wire and is willing to sell $750,000 worth for only $600,000. You already have one year's supply of wire on hand. This new wire would be used one year from today. What implied interest rate would your firm be earning if you purchased the wire?

• A) −20 percent
• B) 13.5 percent
• C) 21 percent
• D) 25 percent

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Definitions:

Passive Process

A process that occurs naturally without the need for energy input, such as diffusion or osmosis.

Diffusion

The process by which molecules move from an area of high concentration to an area of low concentration.

Concentration

The measure of the amount of a given substance in a specific volume of a solution, or the mental ability to focus on a single task without distraction.

Hypernatremia

A condition characterized by an abnormally high concentration of sodium in the blood.