Question: The article I picked from the APUS library is about the value of money. The Time Value of Money (TVM) explained in its simplest form
The article I picked from the APUS library is about the value of money. The Time Value of Money (TVM) explained in its simplest form is the value that money has in its present form is worth more than the money of the exact same value promised in the future. You are often here this concept discussed in business classes in relation to the lottery. It can be stated as whether it's more beneficial to take it all upfront or get it in equal payments for the rest of your life. For this instance, the article is discussing the TVM during the manufacturing process of a product and the rate that manufacturing of a defective product happens known as the economic manufacturing quantity (EMQ) model for time-dependent demand patterns. Every manufacturing sector wants to produce perfect quality items. But in long run process, there may arise different types of difficulties like labor problem, machinery capabilities problems, etc., due to that the machinery systems shift from in-control state to out-of-control state as a result the manufacturing systems produce imperfect quality items. The equations themselves are then used to determine whether it is imperative to invest in the processes, labor, or quality measures to create fewer defective products in order to make higher profits or if those profits would detract from overall profits because of the sunk costs used to establish them. RESPOND WITH COMMENTS AND QUESTIONS
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