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When You Are About to Get a Shot with a Hypodermic

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When you are about to get a shot with a hypodermic needle, your muscles tighten and there is a catch in your breathing because you have learned to expect that getting poked with a needle will be painful. This explanation of your behavior is consistent with


Definitions:

Net Working Capital Requirement

The amount of current assets a company needs minus its current liabilities to continue its operations smoothly.

Marginal Tax Rate

The rate at which your last dollar of income is taxed, representing the percentage of tax applied to your income for each tax bracket in which you qualify.

Salvage Value

An asset's expected selling price once it has concluded its period of usefulness.

Sunk Costs

Past expenditures that have already been incurred and cannot be recovered.

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