Which of the following, if true, most strongly supports recommending the use of behavior modeling as a cost-effective solution?
A) The training center has the capability to shoot video footage of managers demonstrating basic skills, which could be screened in such workshops.
B) Behavior modeling is widely used in various industries.
C) Employees rated a trial workshop using behavior modeling as enjoyable.
D) Follow-up studies show that the effects of behavior modeling on actual job performance are difficult to quantify.
E) Productivity in most divisions is uneven, with some workers doing much better than average and others doing less well.
Answer: E
Explanation: E) The essential strategy of this form of training involves showing employees a way of carrying out a task, then asking them to imitate it. So Choice E is a simple and cost-effective move, since excellent models already exist in most divisions. Choice A also supports the move, but only if the managers chosen as models are, in fact, effective examples of the behavior the company wants to encourage. The fact that a training program is widely used (Choice B) or is enjoyable (Choice C) does not make it an effective solution to the firm's problems. Choice D undercuts this recommendation by conceding that metrics supporting its use would be hard to provide.
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Answer the following statement true (T) or false (F)
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Indicate whether the statement is true or false.
Your company is considering the replacement of an old delivery van with a new one that is more
efficient. The old van cost $40,000 when it was purchased 5 years ago. The old van is being depreciated using the simplified straight-line method over a useful life of 8 years. The old van could be sold today for $7,000. The new van has an invoice price of $80,000, and it will cost $6,000 to modify the van to carry the company's products. Cost savings from use of the new van are expected to be $28,000 per year for 5 years, at which time the van will be sold for its estimated salvage value of $18,000. The new van will be depreciated using the simplified straight-line method over its 5-year useful life. The company's tax rate is 35%. Working capital is expected to increase by $5,000 at the inception of the project, but this amount will be recaptured at the end of year five. What is the incremental free cash flow for year one? A) $24,220 B) $22,305 C) $18,875 D) $19,985