Edy's Is a Brand of High Quality Ice Cream

question 21

Multiple Choice

Edy's is a brand of high quality ice cream. Edy's introduced Godiva ice cream and Starbucks ice cream to tempt ice cream lovers to eat even more ice cream. Edy's used a ________ strategy.

• A) market development
• B) product penetration
• C) market penetration
• D) diversification
• E) product development

---

Definitions:

Required Return

The lowest percentage of return per annum that draws in companies or individuals to invest in a particular security or project.

IRR

Internal rate of return; a financial metric used to assess the profitability of investments by calculating the rate of return where net present value of all cash flows (both positive and negative) from a project equals zero.

Project

A temporary endeavor undertaken to create a unique product, service, or result.

Payback Criterion

A capital budgeting method that measures the time required to recoup the initial investment in a project.