The Management of Zesty Corporation Is Considering the Purchase of a New

question 105

Multiple Choice

The management of Zesty Corporation is considering the purchase of a new machine costing $400,000. The company's desired rate of return is 10%. The present value factors for $1 at compound interest of 10% for 1 through 5 years are 0.909, 0.826, 0.751, 0.683, and 0.621, respectively. In addition to the foregoing information, use the following data in determining the acceptability in this situation: The cash payback period for this investment is:

• A) 5 years
• B) 4 years
• C) 2 years
• D) 3 years

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Definitions:

Stimulus Control

A behavior modification technique that involves changing the environment to reduce undesired behaviors by associating them with different cues.

Time Sampling

A research method in which observations are made at specific intervals over a defined period to gather data.

Self-monitors

Individuals who regulate their behavior to accommodate social situations.

Covert Positive Reinforcement

The use of positive stimuli to increase the likelihood of a desired behavior occurring, without the individual being explicitly aware of it.