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However, it also signifies that subsequent performance of the same task will take less time due to the task being relatively easier to learn. A high learning curve indicates to a business that something might require intensive training, but that an employee will quickly become more proficient over time. The slope of the learning curve represents the https://turbo-tax.org/ rate in which learning translates into cost savings for a company.

The discount rate is the risk-free rate of return or the return that could be earned instead of pursuing the investment. If the project or investment can’t generate enough cash flows to beat the Treasury rate (or risk-free rate), it’s not worth pursuing. Discounted cash flow https://kelleysbookkeeping.com/ (DCF) valuation is a type of financial model that determines whether an investment is worthwhile based on future cash flows.

Repealing LIFO treatment of inventory would generate relatively little revenue for its economic costs. And LIFO repeal would disproportionately burden companies within industries that maintain more inventories https://accounting-services.net/ and further disincentivize investment that could prevent supply chain breakdowns. Though preserving LIFO will not fix supply chain issues on its own, eliminating it would make the problem worse.