Cody Corporation's Southern Region Operates as an Investment Center

question 117

Multiple Choice

Cody Corporation's Southern region operates as an investment center.The division's director is considering investing in machinery which costs of $100,000 and is expected to generate $32,000 in additional operating income.If the residual income for the equipment is $12,000,what is the division's required rate of return?

• A) 12%
• B) 20%
• C) 32%
• D) None of these ans choices are correct

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Definitions:

Challenging Work

Refers to job assignments or tasks that are demanding and stimulating, often requiring creativity and problem-solving skills.

Frederick Herzberg

A psychologist best known for developing the Motivation-Hygiene Theory, which asserts that certain factors lead to job satisfaction while others prevent dissatisfaction.

Salary

The fixed regular payment, typically paid on a monthly or biweekly basis, made by an employer to an employee, especially a professional or a white-collar worker.

Dissatisfiers

Factors or elements in a job or environment that can cause dissatisfaction or discomfort if missing, but do not necessarily motivate if present.