Which of the Following Is NOT a Convenience Product

question 256

Multiple Choice

Which of the following is NOT a convenience product?

• A) A staple.
• B) An impulse product.
• C) A business product.
• D) An emergency product.
• E) All of these are convenience products.

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Definitions:

Replacement Projects

Investments undertaken to replace old or obsolete assets with new ones, aiming to maintain or enhance efficiency, productivity, or the competitive position of a business.

Sunk Costs

Costs that have already been incurred and cannot be recovered, and thus should not factor into the decision-making process for future investments.

Internal Rate of Return (IRR)

A metric used in capital budgeting to estimate the profitability of potential investments, calculated as the discount rate that makes the net present value of all cash flows equal to zero.

Net Present Value (NPV)

A method used in capital budgeting to assess the profitability of an investment or project by calculating the difference between the present value of cash inflows and outflows.