A manager weighs three options for capacity cushion as depicted in Figure 4.1. If the dollar amounts expressed in the figure are cash flows, which option is optimal?
A. large cushion
B. medium cushion
C. small cushion
D. Not enough information is given to select an option.
Answer:B
A manager weighs three options for capacity cushion as depicted in Figure 4.1. If the dollar amounts expressed in the figure are cash flows, which option is optimal?
A. large cushion B. medium cushion C. small cushion D. Not enough information is given to select an option.