A Company with $800,000 in Operating Assets Is Considering the Purchase

question 35

Multiple Choice

A company with $800,000 in operating assets is considering the purchase of a machine that costs $75,000 and which is expected to reduce operating costs by $20,000 each year.The payback period for this machine in years is closest to:

• A) 0.27 years.
• B) 3.75 years.
• C) 10.7 years.
• D) 40 years.

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Definitions:

Cognitive-Affective Person Units

Components of personality that involve cognitive and emotional processes influencing an individual's interpretation and reaction to their environment.

If ... Then Contingencies

This refers to the concept that behavior is often dependent on specific situational contexts, suggesting that actions vary based on the "if" condition that is met.

Self-Coherence

The concept of how consistent an individual's identity, thoughts, and values are over time and across situations.

Self-Efficacy

A person's confidence in their ability to carry out actions required to achieve certain performance goals.