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A company has just completed the production of the first 16 batches of a product. A learning curve has been observed throughout. The following table gives further details.

To the nearest whole percentage, what rate of learning is implied?

Options:

87%

84%

93%

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Question 2

Which of the following correctly defines the expected value of a project?

Options:

The weighted average of the possible outcomes of the project.

The actual amount of incremental wealth that the project will generate.

The most likely amount of incremental wealth that the project will generate.

The present value of the positive cash flows that the project will generate.

Question 3

The money cost of capital is 12%. The expected rate of inflation is 4%. What is the real cost of capital?

Give your answer to 2 decimal places.

Options:

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