Suppose a New Cost-Saving Device Will Generate $1,000 Net Savings

question 56

Multiple Choice

Suppose a new cost-saving device will generate $1,000 net savings per year to a firm.The device costs $10,000.Should the firm purchase the device?

• A) Definitely.
• B) Absolutely not.
• C) The firm is indifferent between buying the device and not.
• D) More information is required to answer.

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Definitions:

Activating Event

An incident in the external environment or a thought that triggers a psychological response.

General Adaptation Syndrome (GAS)

General Adaptation Syndrome (GAS) is a theoretical model describing the body's short-term and long-term reactions to stress, including stages of alarm, resistance, and exhaustion.

Resistance Stage

The second phase of the General Adaptation Syndrome, where the body mobilizes its defenses to adapt to stressors.

Daily Hassles

Regular minor irritations or annoyances that people encounter in their everyday lives, which can accumulate and impact mental health.