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State the term capacity.
Capacity:
It is the capability of an operation to do and produce. The maximum restriction to the volume of product or service an organisation can create, in a specified timescale and bound through its constraints as like existing of technology, and business processes of resources. It can be quantified using efficiency and employment measures.
The real risk-free rate, r*, is 2.5%. Inflation is expected to average 2.8% a year for the next 4 years, after which time inflation is expected to average 3.75% a year. Assume that
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integrated systems
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