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bonufazy [111]
3 years ago
7

Nancy is gathering information about different cars in order to decide which car she wants to buy. According to the elaboration

likelihood model of persuasion, Nancy will be more likely to process this information through the central route if
a. she is cheerful while researching information about cars.
b. she does not care about cars.
c. she is personally motivated to devote time and energy to the information.
d. she does not know much about cars.
Business
1 answer:
jolli1 [7]3 years ago
8 0

Answer:

c. she is personally motivated to devote time and energy to the information.

Explanation:

central route is when you actively think about and weight information against what you already know; considering arguments carefully.

Nancy will be more likely to process this information through the central route if she is personally motivated to devote time and energy to the information.

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A project requires the purchase of $587,000 of equipment that will be depreciated straight-line to a zero book value over the fo
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Answer:

The cash inflows in Year 2 is: $6,750

The present value of the project in Year 2 is: $5,286 (ignored the depreciation)

The Net Present Value in Year 2 is: $-642,112 (required return rate is 13%)

Explanation: <em><u>(See the attached table also)</u></em>

1. Initial investment: $587,000

2. Year 1:

- Sales: $625,000

- Cash expense: $487,000

- Money to support project: $625,000 x 12% = $75,000

- Tax to pay: $625,000 x 21% = $131,250

=> Cash inflow in Year 1:

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NPV: -60,398 - 587,000 = - 647,398

Year 2:

- Capital from year 1: $75,000

- Sales: $625,000

- Cash expense: $487,000

- Money to support project: $625,000 x 12% = $75,000

- Tax to pay: $625,000 x 21% = $131,250

=> Cash inflow in Year 2:

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Present value: 6,750 : [(1+0.13)^2] = 5,286

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