When Fisher-Price Managers Attempted to Redesign Its Classic Toy, the Chatter

question 76

Multiple Choice

When Fisher-Price managers attempted to redesign its classic toy, the Chatter Telephone, they considered adding a noisemaker, wheels, and eyes to a basic plastic telephone, and thus they developed several

• A) virtual prototypes.
• B) product substitutes.
• C) product hypotheses.
• D) new-product concepts.
• E) new-feature matrices.

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Definitions:

IRR

A financial metric, the Internal Rate of Return, is applied to estimate the profitability prospects of potential investments.

AAR

Average Annual Return, representing the average amount of money earned by an investment each year over a given time period.

Discounted Payback

A capital budgeting method that calculates the time needed to recoup the initial investment in present value terms, considering the time value of money.

Crossover Point

The point at which two or more different financial indicators meet, often used in budgeting to identify when an investment will start to generate profit.