Use the Information for the Question(s) Below

question 70

Multiple Choice

Use the information for the question(s) below.
Shepard Industries is evaluating a proposal to expand its current distribution facilities. Management has projected the project will produce the following cash flows for the first two years (in millions) .

-The depreciation tax shield for Shepard Industries project in year two is closest to:

• A) $84
• B) $196
• C) $72
• D) $96

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Definitions:

Respondent Behavior

Behavior that occurs as a direct response to a specific stimulus, often reflexive or involuntary in nature.

Classical Conditioning

A learning process in which a biologically potent stimulus is paired with a previously neutral stimulus to elicit a conditioned response.

Negative Reinforcement

A behavioral principle where the removal or avoidance of an unpleasant stimulus increases the likelihood of a behavior being repeated.

Instinctive Drift

The tendency of an animal to revert to instinctive behaviors that interfere with learned behaviors from operant conditioning.