Webster's Wants to Introduce a New Product That Has a Start-Up

question 60

Multiple Choice

Webster's wants to introduce a new product that has a start-up cost of $7,800.The product has a 2-year life and will provide cash flows of $6,700 in Year 1 and $4,300 in Year 2.The required rate of return is 14 percent.Should the product be introduced? Why or why not?

• A)Yes; the NPV is $1,108.15.
• B)Yes; the IRR is 12.97 percent.
• C)Yes; the IRR is 28.72 percent.
• D)Yes; the NPV is $1,409.27.
• E)No; the IRR is 12.94 percent.

Recognize the importance of aligning proposal content with audience needs and expectations.

Identify strategies for effectively concluding proposals.

Understand the role of the budget section in a proposal and how to accurately estimate costs.

Know how to describe the method or procedure for achieving the proposal's objectives.

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Definitions:

Structural Unemployment

A form of unemployment caused by a mismatch between the skills that workers offer and the skills demanded by employers, often due to technological changes or shifts in the economy.

Computer-Operated Machines

Computer-Operated Machines are devices controlled by computers to perform various tasks, increasing efficiency and precision in manufacturing and other industries.

Structural Unemployment

Occurs when there is a mismatch between the skills that workers in the economy can offer and the skills demanded by employers.

Changing Technology

Refers to the rapid evolution and adoption of new tools, processes, and methodologies in the technology sector, affecting businesses and societies.