Explain the fundamental difference between the "capacity options" and the "demand options" of aggregate planning strategies

What will be an ideal response?


Capacity options do not try to change the demand but attempt to absorb the demand fluctuations; capacity options deal with supply, not demand. Demand options try to smooth the demand pattern, but do not impact supply or capacity.

Business

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Mulroney Corp. is considering two mutually exclusive projects. Both require an initial investment of $10,800 at t = 0. Project X has an expected life of 2 years with after-tax cash inflows of $6,600 and $7,400 at the end of Years 1 and 2, respectively. In addition, Project X can be repeated at the end of Year 2 with no changes in its cash flows. Project Y has an expected life of 4 years with after-tax cash inflows of $4,300 at the end of each of the next 4 years. Each project has a WACC of 8%. Using the replacement chain approach, what is the NPV of the most profitable project? Do not round the intermediate calculations and round the final answer to the nearest whole number.

A. $3,442 B. $3,718 C. $3,408 D. $3,339 E. $2,960

Business

In a statement of work the scope is used to define the requirements of a project down to the smallest details

Indicate whether the statement is true or false

Business

A term that means the same as the term "variable" in an ANOVA procedure is

a. factor b. treatment c. replication d. variance within

Business

An independent auditor has concluded that substantial doubt remains about a nonpublic client's ability to continue as a going concern, but the client's financial statements have properly disclosed all of its solvency problems. The auditor would probably issue a(an):

A. "Except for" qualified opinion. B. Standard unmodified opinion. C. Unmodified opinion with an appropriate emphasis-of-matter paragraph. D. Adverse opinion.

Business