A Restaurant Is Contemplating Replacing Its Service Staff with an Electronic

question 15

Multiple Choice

A restaurant is contemplating replacing its service staff with an electronic ordering process.Installing computers at each table will cost $150,000,but is expected to generate a cost savings of $40,000 per year for the next 10 years,when the computers will need to be replaced.If the restaurant has a cost of capital of 10%,what is the NPV of this investment?

• A)-$90,000
• B)$250,000
• C)$95,783
• D)-$150,000
• E)$213,636

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Definitions:

Psychodynamic Theory

A perspective in psychology that emphasizes unconscious processes and childhood experiences in shaping personality and behavior.

Neurotic Behavior

Patterns of thought, feeling, or behavior characteristic of people experiencing emotional distress or mental illness.

Libido

A term used in psychoanalytic theory to denote the sexual drive or desire.

Catharsis

Catharsis is the process of releasing, and thereby providing relief from, strong or repressed emotions, often through art, drama, or therapy.