If a Proposed Expenditure of $400,000 for a Fixed Asset

question 36

True/False

If a proposed expenditure of $400,000 for a fixed asset with a 4-year life has an annual expected net cash flow and net income of $160,000 and $60,000, respectively, the cash payback period is 2.5 years.

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Definitions:

Operant Conditioning

A method of learning that employs rewards and punishments for behavior, where an individual learns to associate actions with consequences.

Active Listening

The practice of fully concentrating, understanding, responding, and remembering what is being said in a conversation.

Behavioral Therapist

A specialist who uses principles of behavior change, including positive and negative reinforcement, to modify maladaptive behaviors in clients.

Token Economy

A form of behavior modification program where individuals earn tokens for exhibiting desired behaviors and can exchange them for various rewards.