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Describe Labour Cost
The information technology shop of Glob us Enterprises is developing software to control the manufacturing processes of a chemical plant. As part of the systems integration effort, one team of software testers in given responsibility to conduct twenty tests on software components that control separation of feedstock into different chemical products. Experience shows that this testing effort can be carried out in different in amounts of time, depending on how many testers are employed on it, as shown in the following table:
Number of Testers
Employed Effort
Duration of Testing
3 testers
14 days
4 testers
10 days
5 tester
9 days
6 tester
8 days
The cost of Glob us of employing a tester averages out to $220 a day. If Globus's goal is to minimize labor costs, how many testers should they use to carry out the testing effort? Explain your rationale.
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Q. Compute the present value of a two-period annuity of $1 per period if the discount rate is 10 percent, A two-period annuity of $1 per period has a present value of $1.808. Find the discount rate from the present value table.
Objective type questions on bond valuation and An increase in the level of wealth in the economy
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