A Firm Is Evaluating a Proposal Which Has an Initial

question 65

Multiple Choice

A firm is evaluating a proposal which has an initial investment of $50,000 and has cash flows of $15,000 per year for five years.If the firm's required return or cost of capital is 10%, the NPV of the project is:

• A)$5,000
• B)$6,862
• C)-$5,000
• D)-$6,862
• E)none of the above

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Definitions:

Sales Presentation

A structured pitch or demonstration aimed at persuading potential buyers to purchase a product or service.

Preapproach Step

The stage in the sales process where the salesperson gathers relevant information about a potential customer before making the initial contact or sales pitch.

Key Decision Makers

Individuals or groups within an organization who have the authority to commit resources and make significant choices affecting the direction and outcomes of projects or business strategies.

Personal-selling Process

A series of steps followed by salespeople, including prospecting, approaching, presenting, handling objections, closing, and follow-up.