Which of the Following Is an Example of a Good

question 51

Multiple Choice

Which of the following is an example of a good call objective for a first call for a product that would require a large capital investment?

• A)to become better acquainted
• B)to get the prospect to agree to visit our local distribution center
• C)to get the prospect to identify all the other members of the firm who will play key roles in this decision
• D)to get the prospect to agree to move its main factory to Alabama
• E)all of the above

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Definitions:

Capital Budgeting

The process of planning and managing a company's long-term investments in major projects or assets.

Mutually Exclusive Projects

Projects where acceptance of one automatically excludes the acceptance of the other due to competing resources.

IRR

Internal Rate of Return; a metric used in capital budgeting to estimate the profitability of potential investments, representing the discount rate that makes the net present value (NPV) of all cash flows from a particular project equal to zero.

NPV

Net Present Value, a method used in capital budgeting to assess the profitability of an investment or project by calculating the present value of expected future cash flows minus initial costs.