Roni Harris, a College Student in the Business Department of Her

question 33

Multiple Choice

Roni Harris, a college student in the business department of her local university, originally planned to major in accounting. However, she discovered an interest in product marketing and sales and is taking courses in these areas.
-In Roni's new sales job with Compu-Tex,she talks with a prospect who is strongly interested in the product,but does not have the budget to purchase a full-year subscription. When Roni reports this to her manager,her manager says,"Turn it into a win-win!"The sales manager most likely wants Roni to:

• A)sell the product to the customer at wholesale cost
• B)work with the customer to sell a length of subscription the customer can afford
• C)work with the research and finance departments to find a way to reduce overall costs
• D)ask the prospect for a referral so that the time spent with this prospect won't be a loss
• E)express appreciation to the prospect for considering the proposal and then find a new lead

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Definitions:

Profitability Index

A financial tool that calculates the relationship between the costs and benefits of a proposed project through its net present value.

Internal Rate Of Return

A metric used in capital budgeting to estimate the profitability of potential investments, calculating the interest rate at which the net present value of all the cash flows (both positive and negative) from a project or investment equals zero.

Discount Rate

In the realm of discounted cash flow analysis, this is the interest rate used for estimating the present value of future financial inflows.

Anticipated Annual Incremental

Expected yearly increases in revenue or benefits as a result of a particular action or investment, not considering future inflation or changes in currency value.