Amtrak Is Taking the Gloves Off in Advertisements and Belittling

question 24

Multiple Choice

Amtrak is taking the gloves off in advertisements and belittling its major competition,which is the airline shuttles.Amtrak's new name for its Metroliner is The Smart Shuttle.Gone are ads that were inner-directed and sold the Metroliner on its leisurely pace.In their place are ads showing rapid shots of the sleek train and business executives conducting no-nonsense meetings "eyeball-to-eyeball." The campaign,which includes television,radio,print,billboards,and posters in commuter railroad cars,targets business travelers,who,Amtrak says,incorrectly believe the train takes far longer than the airplane to travel between two cities.One television spot opens with a shot of airplanes stacked up in a tarmac traffic jam.Another shows a business traveler lumbering into the airport during a snowstorm.The announcer says,"Schedule a meeting.Take the shuttle.Then cross your fingers." The poor soul looks up at the departure board and sees a row of "Canceled" signs.The announcer continues,"Schedule a meeting.Take the Metroliner.Then cross your legs."
-Refer to Amtrak.Television,radio,print,and out-of-home media represent the _____ in the communication process used by Amtrak.

• A) feedback loop
• B) channel
• C) encoder
• D) receiver
• E) communicator

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Definitions:

NPV

Net Present Value; a method used in capital budgeting to assess the profitability of an investment or project, calculated by discounting future cash flows to their present value and subtracting the initial investment.

IRR

The Internal Rate of Return, a financial metric used to evaluate the profitability of potential investments, calculated as the discount rate that makes the net present value of all cash flows equal to zero.

NPV Profiles

Graphs that show the relationship between a project's NPV and various discount rates, used to analyze the sensitivity of a project's value to changes in the cost of capital.

Crossover Rate

The rate at which the net present values of two projects are equal, often used in capital budgeting to compare projects.