Which of the Following Can Be Deduced About a Three-Year

question 9

Multiple Choice

Which of the following can be deduced about a three-year investment project that has a two-year payback period?

• A)the NPV is positive.
• B)the IRR is greater than the cost of capital.
• C)Both the NPV is positive and the IRR is greater than the cost of capital can be deduced.
• D)Neither the NPV is positive nor the IRR is greater than the cost of capital can be deduced.

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Definitions:

Posttesting

The evaluation of an IMC campaign’s impact after it has been implemented.

Coupon Redemption Rate

The percentage of issued coupons that are used by consumers to make a purchase, indicating the effectiveness of coupon campaigns.

Sales Promotion

Marketing activities that aim to temporarily increase interest, demand, or sales of a product or service through incentives.

Flighting

An advertising strategy where ads are run for set periods of time, followed by periods with no ads, to optimize budgets and impact.