Mistral Manufacturing Is Considering an Investment in a New, High-Efficient

question 106

Essay

Mistral Manufacturing is considering an investment in a new, high-efficient machine. The new machine requires an initial investment of $1,750,000. The new system cash flows of either:
a. Even cash flows of $350,000 per year or
b. The following expected annual cash flows: $275,000, $420,000, $820,000, $470,000, and $150,000
Required: Calculate the payback period for each case.

Describe the process of shaping and its significance in learning.

Identify and differentiate between types of reinforcers.

Understand the role and application of reinforcement schedules in modifying behavior.

Recognize the effects of reinforcement (positive and negative) on behavior.

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Definitions:

Variances

The difference between planned or expected financial outcomes and the actual results, often analyzed in budgeting and cost management.

Performance Reports

Documents that compare actual work performance against planned or expected outcomes.

Variable Cost

A cost that varies, in total, in direct proportion to changes in the level of activity. A variable cost is constant per unit.

Fixed Cost

A cost that remains constant, in total, regardless of changes in the level of activity within the relevant range. If a fixed cost is expressed on a per unit basis, it varies inversely with the level of activity.