A Company Is Planning to Purchase a Machine That Will

question 40

True/False

A company is planning to purchase a machine that will cost $24,000, have a six-year life, and have no salvage value. The company expects to sell the machine's output of 3,000 units evenly throughout each year. Total income over the life of the machine is estimated to be $12,000. The machine will generate cash flows per year of $6,000. The accounting rate of return for the machine is 50%.

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Definitions:

Organization Norms

Shared expectations and rules that guide behavior of members within an organization, shaping the organization's culture and dynamics.

Identification

The process by which an individual aligns themselves with specific qualities, values, or traits of another person or group, influencing their behavior and sense of self.

Boss's Wishes

The desires or directives expressly stated or implied by one's supervisor or manager within a workplace setting.

Conforming

The act of aligning one's attitudes, beliefs, and behaviors with group norms or expectations.