Economic Analysis of Product Development Projects Must Evaluate Which of the Following

question 67

Multiple Choice

Economic analysis of product development projects must evaluate which of the following?

• A) Planned profitability of the product
• B) Expected market share to be attained
• C) Net present value of profits
• D) Timing and amount of net cash flow
• E) Demand elasticity of the product

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Definitions:

Average Total Assets

A measure used to evaluate a company's efficiency at using its assets by calculating the average of its total assets over a specific period.

Operating Income

The profit realized from a business's ongoing operations, calculated before interest and taxes.

Statement of Cash Flows

A financial statement that summarizes the amount of cash and cash equivalents entering and leaving a company.

Shares of Stock

Units of ownership interest in a corporation or financial asset, representing an equal proportion of the company's capital.