Torque Engine Company Is Considering Opening a Plant in China

question 95

Multiple Choice

Torque Engine Company is considering opening a plant in China. It will cost $3,500,000 to set up the plant and $800,000 to train employees. An additional $160,000 will be spent to build relationships with the local suppliers. The company anticipates gross profit of $4,500,000 from this new plant. Do the benefits outweigh the costs or do the costs outweigh the benefits, and by how much?

• A)Costs outweigh benefits by $200,000.
• B)Benefits outweigh costs by $200,000.
• C)Costs outweigh benefits by $40,000.
• D)Benefits outweigh costs by $40,000.

Recognize the basic tenants and critiques of evolutionary theories related to personality and social behavior.

Comprehend the role of epigenetics in gene expression and its implications for behavior and disease.

Understand the principle of evaluating projects based solely on incremental cash flows.

Identify and categorize different types of costs related to project evaluation, such as sunk costs and opportunity costs.

---

Definitions:

Right Hand

Refers to the hand on the right side of the body, often associated with dominance or primary use in most activities for the majority of people.

Frequent Sessions

Regular and often repeated meetings or periods of activity, such as therapy or exercise classes, aimed at achieving a specific goal.

Crutch Walking

The technique of walking with the aid of crutches to support and balance the body while one or both legs are unable to bear weight.

Health Promotion

Efforts and policies aiming to increase control over and improve individual and communal health.