NPV Analysis. Travel Services, Inc., is contemplating purchase of a number of seats on regularly scheduled airlines for resale to leisure and business customers. The company projects the following costs and revenues for each type of service:
A. Calculate the net present value for each service. Which is more desirable according to the NPV criterion?
B. Calculate the profitability index for each service. Which is more desirable according to the PI criterion?
C. Under what conditions would either or both of the services be undertaken?
Definitions:
Sales Process
A sequential series of actions by the salesperson that leads toward the prospect taking a desired action and ends with a follow-up to ensure purchase satisfaction.
Approach
The initial step in the sales process, where the salesperson makes contact with potential customers and begins to establish a relationship.
Introductory Approach
A strategy used to make a first impression or initial proposal to potential clients or customers.
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