If an Asset Costs $240,000 and Is Expected to Have

question 27

Multiple Choice

If an asset costs $240,000 and is expected to have a $40,000 salvage value at the end of its ten-year life, and generates annual net cash inflows of $40,000 each year, the cash payback period is

• A) 7 years.
• B) 6 years.
• C) 5 years.
• D) 4 years.

Recognize various approaches companies adopt to promote ethical behavior and social responsibility.

Understand the concept and motivations behind whistle-blowing in the corporate context.

Acknowledge the recyclability of electronic products and the environmental responsibility of corporations.

Understand the conflict between loyalty and truthfulness in the business world and the role of whistle-blowers.

---

Definitions:

Identifiability Bias

The cognitive bias that causes people to overvalue individual stories and examples over general statistics and broader information.

Emotional Contagion

The phenomenon where emotions can be spread from one person to another, influencing or mimicking the emotional states felt by those around us.

Hostile Perception Bias

The tendency to interpret others' behaviors as aggressive or confrontational, even when no hostility is intended.

Aggressive Nature

The predisposition to act in a hostile or combative manner towards others.