T-Bone Company Is Contemplating Investing in a New Piece of Manufacturing

question 124

Multiple Choice

T-Bone Company is contemplating investing in a new piece of manufacturing machinery. The amount to be invested is $150,000. The present value of the future cash flows is $141,000. Should the company invest in this project?

• A) yes, because net present value is +$9,000
• B) yes, because net present value is -$9,000
• C) no, because net present value is +$9,000
• D) no, because net present value is -$9,000

Learn the importance of empowering employees in delivering quality service to customers.

Understand the concept of setting service standards and its importance in service delivery.

Recognize the role of tangibles in evaluating service quality.

Identify strategies to reduce delivery gaps including technology use and employee empowerment.

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Definitions:

Weak Relationship

Describes a connection or correlation between two variables or entities that shows minimal interdependence or association.

Correlation Coefficient

A numerical measure that indicates the extent to which two variables fluctuate together.

Strength

The quality or state of being physically strong, or the capacity to endure or withstand difficult conditions.

Direction of Relationship

In research, refers to how one variable influences or is associated with changes in another variable, indicating whether the relationship is positive or negative.