An Initial Investment of $42,000 Is Expected to Generate Annual

question 23

Multiple Choice

An initial investment of $42,000 is expected to generate annual cash flows of $10,000, $15,000, $15,000, and $12,000, respectively.Assume straight-line depreciation and ignore income taxes.The payback period is _____.

• A)3.83 years
• B)3.17 years
• C)3 years
• D)indeterminable because the cash flows are uneven

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Definitions:

Motivates

drives individuals or groups to act in a certain way or to pursue specific goals, often by providing incentives or reasons.

Hygiene Factors

Elements related to job satisfaction which, if absent, can lead to dissatisfaction but do not necessarily motivate employees if present, such as company policies and working conditions.

Herzberg's Motivation-Hygiene Theory

A theory suggesting that job satisfaction and dissatisfaction arise from different sets of factors, where motivation factors increase satisfaction and hygiene factors prevent dissatisfaction.

Motivation

Refers to the factors and forces that drive an individual to engage in particular behaviors or pursue certain goals.