One key feature of the value of a strong brand is that
A. it can protect the firm from competition.
B. competitors will typically abandon a sector altogether rather than compete.
C. it no longer needs to be supported by advertising and promotion.
D. if it becomes a generic name, the brand is worth even more.
E. it cannot be successfully imitated by a retailer's own brand.
Answer: A
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Under the Health Care Reform Act, persons who do not obtain health coverage will be provided free health insurance by the government
Indicate whether the statement is true or false
A recommended way of demonstrating positive interpersonal skills through social networking is to
A) avoid embarrassing people by complimenting them on social networking sites. B) post well-deserved criticisms of your employer. C) substitute online contact for almost all face-to-face contact. D) establish meaningful contact with coworkers far and wide.
Dependent demand inventory never needs to hold hedge inventory
Indicate whether the statement is true or false.
What is the NPV of the F-22 Raptor project? The Lockheed Martin/Boeing F-22 Raptor is a stealth fighter aircraft. It was designed primarily as an air superiority fighter, but it is also capable of ground attack and other roles
Lockheed Martin Aeronautics is the prime contractor and is responsible for the majority of the airframe, weapon systems and final assembly. Lockheed Martin invested over $10B on design and manufacturing for the aircraft. Assume that those investments were paid for on Jan 1, 2003. Each aircraft will be sold for $350M and the variable cost of building each airplane is $300M. Assume that 70 aircraft will be sold each year for 5 years. Assume that revenues and costs occur at year-end. (So 2003 revenues and costs are incurred on Dec 31, 2003. See the table of cash flows, below.) What is the NPV of the project if Lockheed-Martin's cost of capital is 10%? (Assume that there are no taxes.) Date Investments Revenues Costs Jan. 1, 2003 $10B Dec. 31, 2003 $24.5B $21B Dec. 31, 2004 $24.5B $21B Dec. 31, 2005 $24.5B $21B Dec. 31, 2006 $24.5B $21B Dec. 31, 2007 $24.5B $21B A) $3,500,000 B) $3,267,754 C) $5,243,412 D) $13,267,75 E) $82,874,276