Manufacturers Are Constantly Tempted to Move from Exclusive or Selective

question 28

Multiple Choice

Manufacturers are constantly tempted to move from exclusive or selective distribution to more intensive distribution in order to ________.

• A) increase coverage and sales
• B) decrease coverage and sales
• C) enter the market
• D) leave the market
• E) none of the above

---

Definitions:

NPV

Net Present Value, a calculation that represents the difference between the present value of cash inflows and the present value of cash outflows over a period of time.

Discount Rate

The interest rate that a central bank charges financial institutions for short-term loans, or used in discounted cash flow (DCF) analysis to present value future cash flows.

APR

The Annual Percentage Rate, which is the interest rate for a whole year on a loan, including fees.

Present Value Payback Period

A capital budgeting technique that calculates the period of time required for the present value of future cash flows to cover the initial investment cost.