If a Firm's Marketing Dashboard Displays a CDI Over 100

question 195

Multiple Choice

If a firm's marketing dashboard displays a CDI over 100 for a consumer packaged good, such as General Mills' Warm Delights Minis, this indicates which of the following?

• A)a weak brand position in a segment
• B)a strong brand position in a segment
• C)above-average product category purchases by a market segment
• D)below-average product category purchases by a market segment
• E)There is not enough information to make any conclusions.

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Definitions:

Net Present Value Method

A method of evaluating investments by calculating the present value of expected future cash flows, subtracting the initial investment.

Internal Rate of Return Method

A capital budgeting technique used to evaluate and compare the profitability of investments, calculating the interest rate at which the net present value of costs equals the net present value of benefits.

Capital Rationing

The process of selecting the most profitable projects to invest in when a company has a limited amount of capital.

Capital Outlay

Expenditures for acquiring fixed assets or adding to the value of an existing fixed asset with a useful life extending beyond the taxable year.