A Grocery Store Manager Has $600 in Cash with Which

question 88

Multiple Choice

A grocery store manager has $600 in cash with which to buy a rug cleaner.Rental income from the cleaner would be about $75 per year.The interest rate is 11 percent.Should the manager buy the machine?

• A)Yes,since the rate of return is greater than the rate of interest.
• B)Yes,since the manager does not have to borrow the money the interest rate is irrelevant.
• C)No,since the yield of $75 is less than the interest cost of 11 percent.
• D)No,since the rate of return is less than the interest rate.
• E)Yes,since the return of $75 is greater than 11 percent.

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Definitions:

Effective Change

Involves the successful implementation of new ideas, behaviors, or processes in an organization, leading to measurable improvements.

Critical Few

A term referring to the small number of vital factors or key individuals that are considered most important in achieving a larger goal or performance target.

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The feeling of disorientation experienced by someone who is suddenly subjected to an unfamiliar culture, way of life, or set of attitudes.

Mental Strain

Psychological stress or pressure that affects an individual's mental health or well-being.