Chovita Motors Corp

question 17

Multiple Choice

Chovita Motors Corp. is considering a machine that costs $100,000 that will increase the net income of the company. The net income for the next 3 years is expected to be $30,000, $90,000, and $150,000. The depreciation expense for the next 3 years will be $5,000, $3,000, and $2,000. If the machine has no salvage value and then net present value (NPV) of the project is _____. The expected rate of return is 10%. (Round off the answer to nearest units place.)

• A) $151,669
• B) $175,600
• C) $369,996
• D) $122,878
• E) $250,614

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Definitions:

Generalization of Inhibition

Generalization of inhibition occurs when an organism learns to suppress a response not only to the conditioned stimulus but also to stimuli that are similar to the conditioned stimulus, demonstrating a broadening of inhibitory control.

Generalization Gradient

A graph that shows the strength of responding in the presence of stimuli that vary in similarity to the conditioned stimulus; typically, responses diminish as stimuli become less similar.

Hull-Spence Model

A theory of learning that integrates drive reduction and incentive motivation, proposing that a combination of stimuli and past reinforcements can predict behavior.

Generalization Gradients

In learning theory, the range and degree to which a learned response is produced to stimuli that vary from the original conditioned stimulus.