NPV Methods Can Be Used to Estimate the Present Value

question 143

True/False

NPV methods can be used to estimate the present value of a customer to a business so that strategic decisions can be made to retain customers and lower churn rates.

---

Definitions:

Recession

A downturn in the economy.

Equilibrium Price

The price at which the quantity of a good demanded by consumers equals the quantity supplied by producers, resulting in market balance.

Equilibrium Quantity

Equilibrium Quantity is the quantity of goods or services that is supplied and demanded at the equilibrium price, where market supply and demand balance.

Demand Curve

A chart that demonstrates how the demand for a product changes in response to its price during a particular period.