According to the Net Present Value Method, If the Present

question 24

Multiple Choice

According to the net present value method, if the present value of cost savings exceeds the acquisition cost of a new machine:

• A) the old machine should be retained.
• B) the new machine should be purchased.
• C) the old machine should be sold off without adding the new machine.
• D) the old machine should be scrapped.

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Definitions:

Approach-approach

A conflict situation in which an individual must choose between two desirable outcomes, often leading to decision-making stress.

Avoidance-avoidance

A situation in which a person faces a decision between two unfavorable or undesirable options, leading to conflict and stress.

Approach-avoidance

A psychological conflict that occurs when a person is simultaneously drawn to and repelled by the same object, event, or action.

Social Readjustment Rating Scale

A scale that measures the amount of stress in a person's life resulting from major life changes or adjustments.