Refer to Scenario 9.10. What should the reorder point be if demand and lead time are invariant and the farm desires a 90% service level?
A) two bags
B) four bags
C) six bags
D) eight bags
B
Business
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Which of the following statements is most likely correct for a project costing $50,000 and returning $14,000 per year for five years?
A) NPV = $20,000 B) IRR = 2.8 percent C) IRR is greater than 10 percent D) NPV = $3,071.01
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Services can be stored and are not provided "on demand."
Indicate whether the statement is true or false
Business