A Product Idea Is an Idea for a Possible Product

question 122

True/False

A product idea is an idea for a possible product a company can offer the market,while a product concept is a detailed version of the idea stated in meaningful consumer terms.

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Definitions:

MIRR

Modified Internal Rate of Return (MIRR) is a financial metric that evaluates the profitability of investments, adjusting the internal rate of return (IRR) to account for the reinvestment of cash flows at a different rate.

Present Value

The current value of a future amount of money or stream of cash flows, discounted at a certain interest rate.

Future Value

The amount a present sum will grow into at a specified interest rate over a specified period of time.

Profitability Index

A calculation that determines the relationship between the costs and benefits of a proposed project through the ratio of present value of future cash flows over the initial investment.