Examlex
French research company, Le Calc, is noted for having expert data analysis capabilities. The firm operates throughout Europe, Asia, and the United States. London-based Sterling Research is a data collection firm operating in Europe and United States. Sterling has more than 400 data collection facilities including phone banks and mall intercept locations. Sterling is considering a contract with Le Calc where they will form a new entity, Marketing Research Consultants, Ltd. The business model is to hire several dozen top-level marketing research consultants who will then use the data collection services of Sterling and the data analysis services of Le Calc. The contract represents:
Base Case
The default scenario in scenario analysis, used as a benchmark to compare the outcomes of alternative assumptions or actions.
NPV
Net Present Value, a calculation used to assess the profitability of an investment by summing the present values of all expected future cash flows minus the initial investment cost.
Break-even Points
The level of production or sales at which total revenues equal total expenses, resulting in no net profit or loss.
Cash Break-even
The point at which a business's cash expenses equal its cash revenues, resulting in no net cash flow.
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