A firm estimates that it will receive cash flows from a new product of $150,000 in Year 1, $220,000 in Year 2, and $150,000 in Year 3. If a discount rate of 7% is assumed, what is the NPV of this product’s cash flows?
a. $454,788
b. $556,400
c. $520,000
d. NPV cannot be determined from the information given
a. $454,788
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The payment of accounts payable results in a(n)
a. decrease in liabilities and a decrease in assets. b. decrease in liabilities and an increase in assets. c. increase in liabilities and a decrease in owners' equity. d. decrease in liabilities and an increase in owners' equity.
Which of the following best describes upgrading the existing copier to take advantage of new technology?
A) straight rebuy situation B) modified rebuy situation C) new-task situation D) repetition purchase
Which of the following is true of business markets?
A) Buyers are usually not skilled at comparing competitive product offerings. B) Buyers have limited purchasing power. C) Property rights, language, culture, and local laws are the most important concerns. D) Products sold in such markets are usually highly standardized. E) Business buyers purchase goods to make or resell a product to others at a profit.
Companies that reduce pollution and hazardous waste, reuse or recycle materials, and operate with greater energy efficiency achieve a competitive advantage due to:
A. Cost savings. B. Green marketing. C. Technological innovation. D. Product differentiation.