Practice High Initial Investment (4.4.2) - - test
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High Initial Investment

Practice - High Initial Investment

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Practice Questions

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Question 1 Easy

What does high initial investment refer to?

💡 Hint: Think about the costs involved when starting automation.

Question 2 Easy

Why might small businesses struggle with high initial investments?

💡 Hint: Consider what resources smaller companies generally have.

4 more questions available

Interactive Quizzes

Quick quizzes to reinforce your learning

Question 1

High initial investment refers to the:

Low costs of automation
Large upfront costs
Ongoing expenses

💡 Hint: Think about the setup phase of automation.

Question 2

True or False: Small businesses generally find it easier to manage high initial investments.

True
False

💡 Hint: Consider the financial capacity of smaller companies.

1 more question available

Challenge Problems

Push your limits with advanced challenges

Challenge 1 Hard

A small manufacturing firm has to decide whether to invest in a new automated production line. The initial cost is $500,000. They expect average annual savings of $150,000. How many years will it take to recover the investment?

💡 Hint: Consider how to calculate the return on the investment over time.

Challenge 2 Hard

Discuss how an initial investment in automation might reflect on an entire industry’s competitiveness in a global market.

💡 Hint: Think about scaling and operational advantages as reasons to invest.

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Reference links

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