New Equipment Costs $225,000 and Is Expected to Last for Five

question 361

Multiple Choice

New equipment costs $225,000 and is expected to last for five years with no salvage value. During this time the company will use a 30% CCA rate. The new equipment will save $90,000 annually before taxes. If the company's required rate of return is 11%, determine the NPV of the purchase. Assume a tax rate of 30%.

• A) $51,884
• B) $52,084
• C) $53,284
• D) $54,784
• E) $55,184

Understand the relationship between political skill and job performance, satisfaction, and career success.

Identify personality traits that predispose individuals to engage in networking behaviors.

Comprehend the effects of political climates on job satisfaction, performance, and organizational commitment.

Recognize the role of social astuteness and personal influence in building professional relationships.

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Definitions:

Negative Reinforcement

involves the removal of an unfavorable event or outcome after the display of a behavior, which in turn increases the likelihood of that behavior in the future.

Positive Reinforcement

The addition of a stimulus to increase the probability that a behavior will be repeated.

Negative Reinforcement

A behavioral technique that involves the removal of an unpleasant stimulus to increase the likelihood of a behavior being repeated.

Positive Reinforcement

The addition of a stimulus following a desired behavior that increases the likelihood of the behavior being repeated.