What is an internal rate of return and what advantages and disadvantages are accrued by using it to evaluate projects?
What will be an ideal response?
Internal rate of return (IRR) is a method of evaluating the expected outlays and income associated with a new project investment opportunity. IRR is the discount rate that equates the present values of a project's revenue and expense streams. If IRR is greater than or equal to the company's required rate of return, the project is worth funding. The advantage of using IRR analysis is its ability to compare alternative projects from the perspective of expected return on investment. IRR suffers from difficulty in conflicting solutions if cash flows are not normal, e.g., if net outflows follow a period of net cash inflows. IRR is not the rate of return for a project.
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A marketing study found that respondents believed that a dark-haired model would be more effective in selling gold jewelry than a blond-haired celebrity would if the dark-haired celebrity was not perceived to be ethnic. What two ideas of using celebrities as communication sources are most likely to be at work here?
A) Celebrities should be attractive, but not too attractive. B) The celebrity's image should match that of the product, and blond-haired models are too common for the exclusive image of gold. C) The celebrity's image should match that of the product and should embody cultural meaning. D) The celebrity's image should embody cultural meanings that contrast with the product's cultural stereotypic image.
What are the four elements that are typically part of all negotiations?
What will be an ideal response?
Flurrbies, a brand of unique winter accessories that quickly fell in and out of favor with customers, is an example of a ________
A) style B) fashion C) fad D) norm E) subculture
Which of the following is NOT a condition under which people are likely to use strategic ambiguity?
A) People are faced with multiple goals B) Relationships are tenuous C) Front-line positions are threatened D) Conditions are likely to change