Using the Information in the Table Below, When Will Payback

question 24

Multiple Choice

Using the information in the table below, when will payback occur? To justify the purchase of a new release of information tracking system, Health Information Management Services (HIMS) wants to calculate the new system's payback period. The cost to operate the current system is $25,000 per year. The proposed cost of the new system for the first year is $35,000 with continuing operation costs per year of $15,000. An increase of $10,000 per year in billing is anticipated with the new system because of the addition of a billing component to the release of information tracking functionality. Data are summarized in the following table:
$$\begin{array} { | l | c | c | c | c | } \hline & \text { Year 1 } & \text { Year 2 } & \text { Year 3 } & \text { Year 4 } \\\hline \text { Curent systern cost } & \$ 25,000 & \$ 25,000 & \$ 25,000 & \$ 25,000 \\\hline \text { New 5ystern cost } & \$ 35,000 & \$ 15,000 & \$ 15,000 & \$ 15,000 \\\hline \text { Yearly difference in cost } & - \$ 10,000 & + \$ 10,000 & + \$ 10,000 & + \$ 10,000 \\\hline \begin{array} { l } \text { Curmulative differences } \\\text { in costs }\end{array} & & & & \\\hline\end{array}$$

• A) First year
• B) Second year
• C) Third year
• D) Fourth year

Understand the impact of verbal immediacy on negotiation dynamics.

Identify the key factors leading to breakdowns and failures in negotiations.

Comprehend the role of multiple explanations in negotiation outcomes.

Define key negotiation concepts such as interpretation, exonerating circumstances, and encoding.

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Definitions:

Stress

The term used to describe the physical, emotional, cognitive, and behavioral responses to events that are appraised as threatening or challenging.

Stereotype Threat

Condition in which being made aware of a negative performance stereotype interferes with the performance of someone that considers himself or herself part of that group.

Self-fulfilling Prophecy

A belief or expectation that an individual holds, consciously or unconsciously, that manifests because the individual believes it to be true.

Social Comparison

The process of evaluating one's own abilities, achievements, and situation by comparing oneself to others.