The Management of Opray Corporation Is Considering the Purchase of a Machine

question 119

Multiple Choice

The management of Opray Corporation is considering the purchase of a machine that would cost $360,000, would last for 7 years, and would have no salvage value. The machine would reduce labor and other costs by $78,000 per year. The company requires a minimum pretax return of 11% on all investment projects. (Ignore income taxes.) Use Exhibit 7B-1 and Exhibit 7B-2, to determine the appropriate discount factor(s) using the tables provided.
The present value of the annual cost savings of $78,000 is closest to:

• A) $763,064
• B) $177,027
• C) $546,000
• D) $367,536

Describe the cognitive processes involved in ingroup favoritism and outgroup prejudice.

Recognize the behavioral component of attitudes through examples.

Explain the concept of cognitive dissonance and its cultural variations.

Understand the role of social norms in shaping behavior and attitudes.

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Definitions:

Overinvolved

Overinvolved describes a situation or condition where one becomes excessively engaged or engrossed in something, potentially to the detriment of other responsibilities or relationships.

Therapeutic Bind

A situation in therapy where clients are presented with a dilemma or conflict by their therapist as a means of promoting insight or change.

Self-defeating Behaviors

Actions or patterns of behavior that undermine one’s own goals, desires, or well-being, often occurring subconsciously.

Motivational Interviewing

A counseling approach that helps individuals find the motivation to make positive decisions and accomplish goals through directed conversations.