When a Firm Skips the Distribution Center Concept and Ships

question 47

True/False

When a firm skips the distribution center concept and ships products directly from the manufacturing site to retail stores,the products may move more quickly but at a higher cost.

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Definitions:

Internal Rate Of Return (IRR)

A financial metric used to estimate the profitability of potential investments, calculated as the discount rate that makes the net present value (NPV) of all cash flows equal to zero.

Discounted Payback

This refers to the period of time it takes to recoup an investment in terms of its discounted cash flows, taking the time value of money into account.

Payback

The period it takes for an investment to generate an amount of income or cash equivalent to the cost of the investment.

Internal Rate Of Return

A metric used in financial analysis to estimate the profitability of potential investments, representing the discount rate that makes the net present value of all cash flows equal to zero.