Annie, a Marketing Manager, Is Worried Her Firm Is Doing

question 193

Multiple Choice

Annie, a marketing manager, is worried her firm is doing a poor job of managing the movement of finished products to the final consumer. If she is right, the company should work to improve its

• A) outbound logistics.
• B) administered support system.
• C) materials handling.
• D) coordination of its freight forwarders.

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Definitions:

Average Investment

The mean amount of capital invested in a particular asset, project, or portfolio over a specific time period.

Present Value

The current worth of a future sum of money or stream of cash flows, given a specified rate of return; used in financial analysis to assess the value of future income.

Capital Investment

The expenditure of funds by a firm to acquire physical assets, such as property, plant, or equipment, to improve its long-term income and profitability.

Net Present Value Method

A method of analysis of proposed capital investments that subtracts the amount to be invested from the present value of the cash flows expected from the investments.