You Work in the Air Filter Manufacturing Business

question 91

Multiple Choice

You work in the air filter manufacturing business. Your division is made up of three other people with very different biographical characteristics. Gina is 27 years old, single and female. She has been with the company only six months. Jonathan is 63 years old and a widower who has been with the company for thirty years. Sally is a single mother with four children who has been with the company for five years.
-Based on the information given, which employee would you expect to have the lowest rate of avoidable absence?

• A) All these employees would have about the same rate of avoidable absence.
• B) Sally
• C) Gina
• D) Jonathan
• E) Gina and Sally would probably have equally low rates

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Definitions:

Annuity

An annuity is a financial instrument that provides a consistent series of payments to a person, often serving as a source of income for people in retirement.

Present Value Index

A calculation that compares the present value of net cash inflows to the initial investment, used to evaluate the profitability of an investment.

Computed

Refers to something that has been determined or calculated using a computer or calculator.

Net Present Value

A method used in capital budgeting to assess the profitability of an investment or project, calculated by discounting the expected future cash flows to their present values and subtracting the initial investment.