The Blue Moon Is Considering a Project Which Will Produce

question 247

Multiple Choice

The Blue Moon is considering a project which will produce sales of $120,000 a year for the next five years. The profit margin is estimated at 5.5 percent. The project will cost $140,000 and will be
Depreciated straight-line to a book value of zero over the life of the project. The firm has a required
Accounting return of 9.5 percent. This project should be _____ because the AAR is _____ percent.

• A) Rejected; 4.71
• B) Rejected; 8.57
• C) Rejected; 9.43
• D) Accepted; 9.67
• E) Accepted; 9.43

Understand various motivation theories and their key concepts.

Discern between different drives and needs within motivation theories.

Apply principles of Expectancy Theory to organizational settings.

Recognize the importance of goal setting and its impact on motivation and performance.

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Definitions:

Punishment

Discourages a behaviour by making an unpleasant consequence contingent on its occurrence.

Participation

The involvement or engagement of individuals or groups in decision-making or activities that affect them.

Goal-Setting Theory

A psychological theory proposing that establishing specific, challenging, and achievable goals enhances motivation and performance in individuals and groups.