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Technological Innovation Makes It Possible Not Only to Duplicate the Benefits

question 61

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Technological innovation makes it possible not only to duplicate the benefits obtained from a company's distinctive advantage,but also quickly creates an opportunity to turn a company's competitive advantage into a competitive disadvantage.


Definitions:

Discounted Payback

A capital budgeting method that calculates the time required to recoup the initial investment in present value terms.

Annual Cash Flows

The total amount of money that is transferred into and out of a business, project, or investment within a year.

Required Rate

The minimum return that investors expect to earn when they invest in a project, often used as the discount rate in capital budgeting.

Straight-line Depreciation

A method for dispersing the cost of a physical asset across its useful life in even annual allocations.

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