(Appendix 13C) Prudencio Corporation Has Provided the Following Information Concerning

question 58

Multiple Choice

(Appendix 13C) Prudencio Corporation has provided the following information concerning a capital budgeting project:
The company uses straight-line depreciation on all equipment. Assume cash flows occur at the end of the year except for the initial investments. The company takes income taxes into account in its capital budgeting.
-The total cash flow net of income taxes in year 2 is:

• A) $61,000
• B) $70,000
• C) $110,000
• D) $89,000

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Definitions:

Secondary Reinforcement

A concept in conditioning that involves stimuli which, though not naturally rewarding, become reinforcing through their association with primary reinforcers.

Primary Reinforcement

A term in behavioral psychology referring to a stimulus that satisfies a biological need, leading to an increase in the likelihood of a specific response.

Variable Ratio Schedule

A variable ratio schedule in reinforcement theory involves rewarding a behavior after an unpredictable number of responses, promoting a high and steady response rate.

Fixed Interval Schedule

A reinforcement schedule in operant conditioning where rewards are given at fixed intervals of time, provided the correct response is made.