Consider the Following Partial MPS Record

question 36

Multiple Choice

Consider the following partial MPS record. Beginning inventory is 40 units. The firm uses a fixed order quantity of 70 units. What is the projected available amount in period 3?

• A) 45
• B) 15
• C) 70
• D) 50
• E) 155

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Definitions:

Financial Return

The profit or loss generated on an investment over a particular period, expressed as a percentage of the investment's initial cost.

Rate of Return

The gain or loss on an investment over a specified period, expressed as a percentage of the investment's cost.

Present Value

The present value of a future amount of money or series of cash flows, discounted at a certain rate of return.

Cash Flows

The total amount of money being transferred into and out of a business, particularly in the context of operating, investing, and financing activities.