Micro-Marketing Will Probably Continue to Cost Too Much as Long

question 58

Multiple Choice

Micro-marketing will probably continue to cost too much as long as

• A)the marketing concept is not accepted.
• B)firms fail to identify new opportunities.
• C)firms do "mass marketing."
• D)some managers believe that anyone can run a business successfully.
• E)All of these are reasons micro-marketing will probably continue to cost too much.

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Definitions:

Reinvestment Assumption

The theory that cash flows will be reinvested at a constant rate, often used in financial modeling.

Cost of Capital

The rate of return that a business must achieve in order to generate value, representing the opportunity cost of investing capital in a specific business rather than in an alternative venture.

Average Return

A statistical measure representing the mean outcome or yield from an investment over a given period of time.

NPV

Net Present Value; a calculation used to determine the value of an investment by subtracting the present values of cash outflows (including initial cost) from the present values of cash inflows over a period of time.