Melissa Rossi, Product Manager at National Consumers, Inc $\quad$ $\quad$

question 9

Multiple Choice

Melissa Rossi, Product Manager at National Consumers, Inc.(NCI) , is evaluating alternatives for introducing a new package for toothpaste.She has identified four alternative markets, and has constructed the following table which shows NCI's rewards (in $1,000,000's) for various levels of acceptance by the markets and their probabilities. $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$$\text { Market Acceptance }$$\begin{array}{|c|c|c|c|} \hline \text { Market } & \text { Low (.3) } & \text { Medium (.4) } & \text { High (.3) } \\\hline \text { Northeast Only } & -0.7 & 0 & 1 \\\hline \text { Southeast Only } & -0.2 & 0.2 & 0.8 \\\hline \text { National } & -1.5 & -0.2 & 2 \\\hline \text { None (don't introduce the new package) } & 0 & 0 & 0\\\hline \end{array}$
If Melissa uses the EMV criterion, the appropriate choice would be: ________.

• A)Northeast Only
• B)Southeast Only
• C)National
• D)None (don't introduce the new package)

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Definitions:

Free Cash Flow

The sum of money a business produces once it subtracts the cash spent to sustain its operations and upkeep of its capital assets.

Operating Costs

Expenses associated with running a business's core operations on a daily basis, excluding the cost of goods sold.

Net Operating Working Capital

Net operating working capital is a financial measure that represents the difference between operating current assets and operating current liabilities.

Tax Liability

The total amount of tax that an individual or a corporate entity owes to a tax authority.