The QRT Company Collected the Following Information (In Days)

question 56

Multiple Choice

The QRT Company collected the following information (in days) : What is the manufacturing cycle efficiency?

• A)87.5%.
• B)82.4%.
• C)70.9%.
• D)17.6%.

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Definitions:

Annual Depreciation

The portion of the cost of a fixed asset that is allocated as an expense in each accounting period during its useful life.

Simple Rate of Return

A financial metric used to evaluate the profitability of an investment, calculated as the annual incremental net operating income divided by the initial investment cost.

Internal Rate of Return

A financial metric used to estimate the profitability of potential investments, calculating the rate of return at which the net present value of all the cash flows (both positive and negative) from a project or investment equal zero.

Discount Factor

A number used to calculate the present value of future cash flows; it reflects the time value of money.