Solid Analysis and Evaluation of the Feasibility of the Product/service

question 76

True/False

Solid analysis and evaluation of the feasibility of the product/service idea are critical tasks in starting a new business.

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Definitions:

Required Accounting Return

The minimum return that a company needs to achieve on its investments based on accounting principles, to satisfy stakeholders or internal benchmarks.

Depreciated Straight-line

A method of calculating depreciation by equally spreading the cost of an asset over its useful life.

Book Value

The net asset value of a company, calculated by total assets minus intangible assets (patents, goodwill) and liabilities.

Profitability Index

A financial metric that measures the profitability of an investment, calculated as the present value of future cash flows divided by the initial investment cost.