Y Co enters into a long-term contract under which they will be paid $75,000 at the end of the contract in four years’ time. If interest rates are 5%, what is the present value of the contract (to the nearest hundred dollars)?
A. $75,000
B. $71,400
C. $58,800
D. $61,700
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Using IRR and NPV, which project would you choose?
A. Project A
B. Project B
C. Project C
D. Project D
A company has 5,750 employees at the start of the year. During the year the company expands and hires 750 more employees. In addition, 300 employees resigned and were replaced. What is the labour turnover?
A. 4.9%
B. 5.2%
C. 4.6%
D. 5.5%
Which of the following costs are MOST likely to be incurred by an attempt to reduce employee turnover?
A. Recruitment costs
B. Training and development costs
C. Loss of output
D. Low production volumes
Company ABC budgeted to make 500 units in May. Each unit was budgeted to take one hour. Actual production volume was 550 and the total actual time taken was 530 hours. What is the efficiency ratio?
A. 94%
B. 104%
C. 106%
D. 96%