If a Company Is Operating at a Profit,all Cash Inflows

question 115

True/False

If a company is operating at a profit,all cash inflows associated with an investment project should be multiplied by one minus the tax rate to be placed on an after-tax basis.

---

Definitions:

Cost-Based Pricing

Formulas that calculate total costs per unit and then add markups to cover overhead costs and generate profits.

Personal Selling

A direct form of marketing that involves a salesperson presenting the benefits of a product directly to a customer in order to make a sale.

Price Fixing

An illegal practice where businesses agree on the prices of their products or services, instead of letting market forces determine them.

Odd Pricing

A pricing strategy that sets prices at figures ending in odd numbers, like $4.99, under the belief that they seem lower to consumers.