What are some reasons why firms use the payback period model in capital investment decision making?
Commonly cited reasons include:
1. The payback period can be used to set a maximum payback period for all projects. Used in this way, it is a rough measure of risk, in that the longer it takes for a project to pay for itself, the riskier it is.
2. Firms with liquidity problems would be more interested in projects with quicker paybacks.
3. If the risk of obsolescence is high, firms might prefer a quicker payback.
4. Managers may want a shorter payback period to increase the likelihood that the benefits of
the project would accrue to their management tenure
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Answer the following statements true (T) or false (F)
1. Those with a high need for achievement may be the least efficient managers because they may resist making decisions that make others resent them. 2. According to equity theory, employees who feel they are being underrewarded are more likely to support organizational change, more apt to cooperate in group settings, and less apt to turn to arbitration and the courts to remedy real or imagined wrongs. 3. John's manager just told his team about this year's contest, the winner of which will receive an all-expense paid trip to Bangkok. John does not like to travel to places where he can't speak the language, so he is not very enthusiastic. This reward has a high valence for John. 4. To be most motivating, goals should be specific and challenging but achievable.
______ is the area where two sides in a negotiation may find common ground.
A. CAT B. BATNA C. NATBAT D. ZOPA
On January 1 of Year 1, Congo Express Airways issued $3,500,000 of 7%, bonds that pay interest semiannually on January 1 and July 1. The bond issue price is $3,197,389 and the market rate of interest for similar bonds is 8%. The bond premium or discount is being amortized using the straight-line method at a rate of $10,087 every six months. The life of these bonds is:
A. 32 years B. 26.5 years. C. 15 years. D. 35 years. E. 30 years.
Answer the following statements true (T) or false (F)
1. Listening is the form of communication that is most important for entry-level positions. 2. The major reason for developing effective listening is to build relationships between people. 3. People speak approximately 25% as fast as they think. 4. Active and passive are two types of listening.