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JJ Inc, a Software Company, Was the First to Create a a Customized

question 56

Multiple Choice

J.J. Inc., a software company, was the first to create a customized messenger application. The subscribers can choose the features they wish to install. The value offered by J.J. is different from its competitors in the market. Which of the following is being exemplified in this case?


Definitions:

Discount Rate

The interest rate used to discount future cash flows to their present value, reflecting the opportunity cost of capital.

Net Cash Inflows

The difference between all cash inflows and outflows within a specific period, reflecting the company’s cash position.

Working Capital

The measure of a company's short-term liquidity, calculated as current assets minus current liabilities.

Salvage Value

The approximated financial value of an asset at the termination of its usability.

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