[The Following Information Applies to the Questions Displayed Below

question 75

Multiple Choice

[The following information applies to the questions displayed below.]
Newman Labs is considering buying equipment,which would enable the company to obtain a five-year research contract.The specialized equipment costs $650,000 and will have no salvage value when the five-year contract period is over.The estimated annual operating results of the project are as follows:
All revenue from the contract and all expenses (except depreciation) will be received or paid in cash in the same period as recognized for accounting purposes.
-The return on average investment for this investment is approximately:

• A)10%.
• B)20%.
• C)31%.
• D)50%.

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Definitions:

Immediate Reward

A benefit received directly following a certain action or behavior, which can reinforce the behavior and encourage its repetition.

Intrinsic Motivation

Intrinsic motivation is the drive to act for the enjoyment or satisfaction derived from the activity itself, rather than external rewards.

Extrinsic Motivation

A form of motivation driven by external rewards or pressures, rather than internal desires or satisfaction.

Homeostasis

The process by which biological systems maintain a stable internal environment despite changes in external conditions.