Should Entrepreneurs Be Prepared to Handle Questions from Investors and Learn

question 2

Multiple Choice

Should entrepreneurs be prepared to handle questions from investors and learn from the criticisms and feedback when presenting or pitching?

• A)Yes.You should always learn from feedback
• B)No.What do they know? It's your business
• C)It depends on the type of business
• D)Investors shouldn't be critical when you're describing your business

Understand the principles and applications of the Net Present Value (NPV) and Equivalent Annual Annuity (EAA) method for evaluating projects.

Identify and explain the limitations and advantages of the replacement chain method in capital budgeting.

Calculate and interpret the Internal Rate of Return (IRR), NPV, and Profitability Index (PI) for different projects.

Analyze cash flow projections to determine the viability of projects through various capital budgeting techniques.

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Definitions:

Average Variable Cost

Average Variable Cost is the total variable cost of production divided by the quantity of output produced, representing the variable cost per unit of output.

Variable Cost

Costs that are directly proportional to the level of output or production.

Quantity

The amount or number of a product or service that is available for use or sale.

Marginal Product

The additional output resulting from a one-unit increase in the use of a variable input while holding other inputs constant.