The Management of Nebraska Corporation Is Considering the Purchase of a New

question 65

Multiple Choice

The management of Nebraska Corporation is considering the purchase of a new machine costing $490,000. The company's desired rate of return is 10%. The present value factors for $1 at compound interest of 10% for Years 1 through 5 are 0.909, 0.826, 0.751, 0.683, and 0.621, respectively. In addition to the foregoing information, use the following data in determining the acceptability:
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-The cash payback period for this investment is

• A) 5 years
• B) 4 years
• C) 2 years
• D) 3 years

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Definitions:

Theory X

A management concept that assumes employees are inherently lazy and unambitious, requiring strict supervision and control to be productive.

Hygienes

The qualities in the workplace that are outside the job itself (examples: company benefits, policies, job security). When these factors are weak or missing, motivation will fall; however, when they are high, motivation will not be strong or long term.

Herzberg's Two-factor Theory

A motivational theory proposing that job satisfaction and dissatisfaction arise from two different sets of factors - hygiene factors and motivators.

Professional Women

Refers to women who are engaged in a profession that requires specialized knowledge and often a high level of education.