Which of the Following Reasons Has Led to the Growth

question 9

Multiple Choice

Which of the following reasons has led to the growth in direct marketing activities?

• A)Developments in technology
• B)High costs of other techniques
• C)Growing fragmentation of media and markets
• D)All of the above are reasons that have led to the growth in direct marketing activities

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Definitions:

NPV

Net Present Value (NPV) is a method used in capital budgeting to evaluate the profitability of an investment or project by calculating the difference between the present value of cash inflows and outflows.

Cost of Capital

Cost of capital represents the return rate an entity must pay to its stakeholders in order to justify the use of capital in the business.

Initial Outflow

The initial cash expenditure required to undertake an investment or project.

Average Accounting Return

A measure of investment profitability calculated as the average annual net earnings of a project divided by the average investment in the project.