Which of the Following Is an Example of an Independent

question 43

Multiple Choice

Which of the following is an example of an independent project?

• A)A manufacturing plant considering a major overhaul of an existing machine or replacing the existing machine with a new model.
• B)A hospital considering the purchase of a new MRI machine and a new cardiac monitoring system.
• C)A bank deciding between keeping a manual check sorting process or an automated sort process.
• D)A retailer deciding between an inventory management system offered by two different vendors.

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Definitions:

Marginal Cost

The expense for creating a supplementary unit of a product or service.

Market Interest Rate

The prevailing rate at which borrowers are willing to borrow money and lenders are willing to lend in the financial market.

Needed Financing

The amount of money required to fund a project, venture, or cover operational expenses not met by current revenues.

Process Innovation

The development and use of new or improved production or distribution methods.