A Firm Can Invest in One of Two Projects-The Purchase

question 8

Multiple Choice

A firm can invest in one of two projects-the purchase of new delivery vans or the training of its sales staff in the use of new sales techniques. Both projects cost the same amount of money. The purchase of new delivery vans is expected to reduce costs by $5,000 each year for 10 years. The training of the sales staff in the use of a new sales technique is expected to increase revenues by $5,000 each year for 5 years. Which of the following is true?

• A) Each of these projects would have the same expected rate of return, as they both cost the same.
• B) The training of the sales staff would have the higher expected rate of return, as it increases revenues whereas the purchase of delivery vans only reduces costs.
• C) The purchase of delivery vans would have the higher expected rate of return, as it will reduce costs for a longer time period than the sales staff training will increase revenues.
• D) The expected rates of return for these two projects cannot be compared, as one project reduces costs and the other increases revenues.

Understand the formation and significance of alliances and confederations among Native American tribes for protection and survival.

Identify the various factors that encouraged European exploration and colonization in the 15th and 16th centuries.

Analyze the role of religion and religious reforms in shaping European exploration and interactions with Native Americans.

Understand the complexity of European-Native American relations prior to and after European arrival.

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Definitions:

Competitive Advantage

A unique attribute or position that allows a company to outperform its competitors.

Customer's Tastes

Customer's tastes refer to the preferences, inclinations, and discretionary choices of consumers that influence their purchasing behavior and affect how businesses market and sell products or services.

Competitive Advantage

Competitive advantage is a condition or circumstance that puts a company in a favorable or superior business position compared to its competitors, often through unique resources, capabilities, or strategies.

Extra Services

Additional services provided beyond the basic offerings, often for an extra fee.