When You and Your Partners Opened a Microbrewery and Pub

question 65

Multiple Choice

When you and your partners opened a microbrewery and pub last year, you all agreed that you "had to establish an online presence." You're responsible for maintaining the Facebook and Instagram accounts, and you really have to wonder if all the time and effort you put in is helping your pub reach the right type of customers. Which of the following would indicate that you're on the right track?

• A) Every time you offer a two-for-one microbrew special, you see a big uptick in customers coming through the door.
• B) On average, you get anywhere from 8 to 15 comments on every post.
• C) Nearly all of your posts are shared, sometimes as many as 30 times.
• D) You're averaging about 200 new followers a month on Facebook and Instagram combined.

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Definitions:

Internal Rate Of Return

The break-even discount rate at which a project's cash flows net present value is zero.

Present Value

Present value represents the contemporary worth of a future sum or cash flow sequence, discounted by a certain return rate.

Payback Method

A capital budgeting technique that calculates the amount of time required to recoup the original investment.

Cash Flows

The total incoming and outgoing monetary flow in a commerce, influencing its immediate financial capabilities.