According to the concave-downward model
A. the carryover effect is especially true for low-priced, frequently purchased consumer products.
B. initial outlays of the advertising budget have little impact on sales.
C. sales decrease rapidly if the price is too high.
D. sales are not directly related to the size of the advertising budget.
E. the effects of advertising quickly begin to diminish.
Answer: E
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In the ATM model, if the cost of going to an ATM increases,
A. the number of days between visits to the ATM rises and the quantity of money demanded falls. B. the number of days between visits to the ATM falls and the quantity of money demanded rises. C. both the number of days between visits to the ATM and the quantity of money demanded rises. D. both the number of days between visits to the ATM and the quantity of money demanded falls.
Closing entries result in the transfer of net income or loss into the Retained Earnings account
Indicate whether the statement is true or false
Which of the following factors has the LEAST influence on an individual's core belief system?
A. personality B. life experiences C. physical appearance D. family upbringing E. religious background
Rhoads Corporation is considering a capital budgeting project that would require an investment of $160,000 in equipment with a 4-year expected life and zero salvage value. Annual incremental sales will be $460,000 and annual incremental cash operating expenses will be $330,000. The company's income tax rate is 30% and the after-tax discount rate is 15%. The company uses straight-line depreciation on all equipment; the annual depreciation expense will be $40,000.Assume cash flows occur at the end of the year except for the initial investments. The company takes income taxes into account in its capital budgeting.See separate Exhibit 13B-1 to determine the appropriate discount factor(s) using table. The net present value of the project is closest to:
A. $134,168 B. $97,040 C. $178,252 D. $252,000