Suppose a Firm Is Considering the Purchase of a Machine

question 175

Multiple Choice

Suppose a firm is considering the purchase of a machine which would increase its total revenues by $10,000 for the year. The machine costs $8,000 and has a useful life of one year. The interest rate is 20 percent. This investment should

• A) be undertaken because the rate of return is 2 percent greater than the interest rate.
• B) be undertaken because the rate of return is 5 percent greater than the interest rate.
• C) be undertaken because the rate of return is 7 percent greater than the interest rate.
• D) not be undertaken, because the rate of return is 7 percent less than the interest rate.

Understand the dynamics of group behavior and the bystander effect.

Recognize the importance of group cohesiveness and its contribution to phenomenon like groupthink.

Analyze the role of attractiveness in social relationship initiation and progression.

Understanding the matching hypothesis through the lens of operant conditioning.

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Definitions:

Written Communication

The process of conveying ideas, information, or instructions through the written word, in formats such as letters, emails, reports, or articles.

Informal Techniques

Unofficial or non-traditional methods and approaches used in various fields or practices.

Simple Messages

Communications or statements that are easy to understand due to their clarity and lack of complexity.

Emotional Charged

Refers to communication or content that is loaded with emotions, intended to provoke an emotional response from the audience.