A Local Union Is Negotiating a Contract with an Employer

question 29

Multiple Choice

A local union is negotiating a contract with an employer.The employer has referred to information relating to wages paid by other firms in the industry.If the local union needs assistance to find additional information regarding comparable wages it would most likely contact:

• A)the Labour Council that the local is affiliated with
• B)the international union that the local is affiliated with
• C)the Canadian Labour Congress
• D)the provincial Federation of Labour that that the local is affiliated with
• E)an independent local union

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Definitions:

Profitability Index

A financial metric used to measure the relative profitability of an investment, calculated as the present value of future cash flows divided by the initial investment.

Discount Rate

The discount rate utilized in determining the present value of future cash flows through discounted cash flow (DCF) analysis.

NPV

Net Present Value, a method used in capital budgeting to evaluate the profitability of an investment by calculating the present value of expected cash flows minus the initial cost.

Discount Rate

The interest rate used in discounted cash flow analysis to determine the present value of future cash flows.