Flip Flop Company Is Considering Investing in Production-Management Software That

question 99

Multiple Choice

Flip Flop company is considering investing in production-management software that costs $600,000, has $60,000 residual value, and should lead to cost savings of $150,000 per year for its five-year life. Calculate the average amount invested in the asset that should be used for calculating the accounting rate of return?

• A)$660,000
• B)$600,000
• C)$330,000
• D)$60,000

---

Definitions:

Efficacy Expectation

A belief about one's ability to perform behaviors that should lead to expected outcomes.

Outcome Expectation

Beliefs about the likely results of specific behaviors in given situations.

Behavior Therapy

A form of psychotherapy that focuses on changing maladaptive behaviors through conditioning and learning techniques.

Behavior Therapists

Mental health professionals who utilize principles of behaviorism to treat psychological disorders and behavioral issues through conditioning and learned behaviors.