A Grocery Store Manager Has $600 in Cash with Which

question 88

Multiple Choice

A grocery store manager has $600 in cash with which to buy a rug cleaner.Rental income from the cleaner would be about $75 per year.The interest rate is 11 percent.Should the manager buy the machine?

• A)Yes,since the rate of return is greater than the rate of interest.
• B)Yes,since the manager does not have to borrow the money the interest rate is irrelevant.
• C)No,since the yield of $75 is less than the interest cost of 11 percent.
• D)No,since the rate of return is less than the interest rate.
• E)Yes,since the return of $75 is greater than 11 percent.

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Definitions:

Cross-Cultural Research

A scientific approach that compares cultural contexts to understand the universality or variability of human behaviors, values, and beliefs.

Exchange Relationships

Relationships based on reciprocity and fairness, in which people expect something in return.

Childrearing Practices

Methods and approaches parents use in raising their children, including discipline, education, and emotional support.

Crime Rates

The measure of the occurrence of crimes reported within a given area and time period, often used as an indicator of safety.