Because statistical process control (SPC) requires processes to show measurable variation, it is ineffective for quality levels approaching Six Sigma
a. True
b. False
Indicate whether the statement is true or false
True
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The increased risk of foreign investments is most often incorporated in capital budgeting models by
A) international diversification. B) hedging with financial derivatives. C) reducing market risk. D) calculating certainty equivalents. E) adjusting the discount rate.
Charlie Corporation is considering buying a new donut maker. This machine will replace an old donut maker that still has a useful life of 6 years. The new machine will cost $3720 a year to operate, as opposed to the old machine, which costs $4100 per year to operate. Also, because of increased capacity, an additional 21,200 donuts a year can be produced. The company makes a contribution margin of $0.10 per donut. The old machine can be sold for $8200 and the new machine costs $31,200. The incremental annual net cash inflows provided by the new machine would be (Ignore income taxes.):
A. $6080 B. $2120 C. $2500 D. $380
The output of the capital budgeting decision models is only as good as the inputs that go into them
Indicate whether the statement is true or false.
Systems design
A) describes what a system should do to meet information requirements. B) shows how the new system will fulfill the information requirements. C) identifies which users need what information, where, when and how. D) is concerned with the logical view of the system solution. E) identifies the technology to be used in the system.