________ Pricing Allows Buyers of a Product to Select the Performance

question 56

Multiple Choice

________ pricing allows buyers of a product to select the performance configurations that best fit their needs and price budgets.

• A)Customerization value
• B)Performance-based
• C)Perceived-value
• D)Life-cycle value
• E)Value-in-use

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Definitions:

Present Value

A calculation that determines the current value of a future amount of money or stream of cash flows given a specified rate of return.

Cash Inflows

Money received by a business from its operational activities, investments, or financing.

Salvage Value

Salvage value refers to the expected value an asset will have when it's no longer useful, essentially its end-of-life resale value.

Internal Rate Of Return

The discount rate at which the net present value of an investment's cash flows equals zero, used in capital budgeting to estimate the profitability of potential investments.