Part of the responsibility of the master black belt is to perform a cost of poor quality analysis

Match each one of the examples below with one of the stages of the capital budgeting decision model

Stages: 1. Identify Projects 2. Obtain Information 3. Make Predictions 4. Make Decisions by Choosing Among Alternatives 5. Implement the Decision, Evaluate Performance, and Learn ________ a. Issuing corporate stock for the funds to purchase new equipment ________ b. Learning how to effectively operate Machine #8 only takes 15 minutes ________ c. The need to reduce the costs to process the vegetables used in producing goulash ________ d. Monitoring the costs to operate a new machine ________ e. Percentage of defective merchandise considered too high ________ f. Will introducing the new product substantially upgrade our image as a producer of quality products? ________ g. Estimating yearly cash flows and setting investment budgets accordingly using a 12-year planning horizon. ________ h. Use of the internal rate of return for each alternative ________ i. Tracking realized cash flows and comparing against estimated numbers.

A 15-year bond has an annual coupon rate of 8%. The coupon rate will remain fixed until the bond matures. The bond has a yield to maturity of 6%. Which of the following statements is CORRECT?

a. The bond is currently selling at a price below its par value. b. If market interest rates remain unchanged, the bond's price one year from now will be lower than it is today. c. The bond should currently be selling at its par value. d. If market interest rates remain unchanged, the bond's price one year from now will be higher than it is today. e. If market interest rates decline, the price of the bond will also decline.