The Present Value Index Is Computed Using Which of the Following

question 83

Multiple Choice

The present value index is computed using which of the following formulas?

• A) Amount to be invested/Average rate of return
• B) Total present value of net cash flow/Amount to be invested
• C) Total present value of net cash flow/Average rate of return
• D) Amount to be invested/Total present value of net cash flow

Understand the importance and processes of pretesting and posttesting in advertising copy.

Differentiate between various types of advertising agencies and their services.

Recognize the distinctions between sales promotions tools such as coupons, deals, contests, and sweepstakes.

Outline the steps to develop an effective advertising program.

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Definitions:

Pleasure

A state of feeling pleased or satisfied, often resulting from the fulfillment of a desire or need.

Synonymous

Having the same or nearly the same meaning as another word or phrase in the same language.

Maximize Utility

The economic principle aiming to achieve the highest satisfaction possible from consumption given limited resources.

Allocate Money Income

The process of distributing financial resources among different uses to satisfy various needs and desires.