If Nabisco Had Established a Pricing Objective of Selling One

question 27

Multiple Choice

If Nabisco had established a pricing objective of selling one out of every three crackers consumed in the world, it would have established an objective based on

• A) cash flow.
• B) market share.
• C) survival.
• D) return on investment.
• E) euro sales volume.

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Definitions:

Rate of Return

The profit or deficit achieved from an investment during a certain timeframe, represented as a proportion of the investment's initial outlay.

Present Value Factors

Numerical factors used to calculate the present value of future cash flows by accounting for the time value of money.

Internal Rate of Return

A financial metric used to evaluate the profitability of potential investments by calculating the rate of return at which the net present value of all the cash flows (both positive and negative) from a project or investment equals zero.

Present Value

The today's value of money expected or a sequence of monetary flows in the future, determined by a particular rate of return.