Anna Taylor Buys a Machine for Her Business

question 68

Multiple Choice

Anna Taylor buys a machine for her business.The machine costs $150,000.Anna estimates that the machine can produce $40,000 cash inflow per year for the next five years.Her cost of capital is 12 percent.What is the approximate net present value?

• A)$14,456
• B)$11,492
• C)$34,192
• D)$(5,808)

Understand the relationship between mental maps and spatial/geographic perception.

Identify the brain regions involved in mental imagery and auditory imagination.

Evaluate the impact of propositional versus dual-coding theories on information representation.

Understand the limitations and methodological concerns in imagery research.

---

Definitions:

Ultimatum Games

Represent a scenario in economic experiments where one participant proposes a division of resources, and the other can accept or reject the offer, which, if rejected, leaves both with nothing.

Heuristics

The brain’s low-energy mental shortcuts for making decisions. They are “fast and frugal” and work well in most situations but in other situations result in systematic errors.

Behavioral Economics

An area of economic research that examines how psychological, cognitive, emotional, cultural, and social factors affect the economic decisions of individuals and institutions.

Neoclassical Economics

An approach to economics focusing on the determination of goods, outputs, and income distributions in markets through supply and demand.