As the Director of Capital Budgeting for Denver Corporation, You

question 93

Multiple Choice

As the director of capital budgeting for Denver Corporation, you are evaluating two mutually exclusive projects with the following net cash flows: If Denver's required rate of return is 15 percent, you would choose?

• A) Neither project.
• B) Project X, since it has the higher IRR.
• C) Project Z, since it has the higher NPV.
• D) Project X, since it has the higher NPV.
• E) Project Z, since it has the higher IRR.

Understand the basic principles and importance of market segmentation in marketing.

Recognize the different bases for segmenting a market (demographic, geographic, psychographic, and behavioral).

Identify and evaluate the criteria for successful market segmentation (measurable, substantial, accessible, differentiable, and actionable).

Distinguish between different market targeting strategies (undifferentiated, differentiated, and concentrated) and their implications.