A Comparison of Year-To-Year Changes in Customer Net Present Value

question 80

Multiple Choice

A comparison of year-to-year changes in customer net present value estimates

• A) is one way to add certainty to the customer evaluation process.
• B) highlights whether managers have been successful in maintaining long-run profitable relationships with their customers.
• C) can be used to motivate customers.
• D) is difficult to calculate because of the need to know the customers' cost of capital.
• E) can be used in place of the payback method.

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Definitions:

Last 20 Years

Refers to the most recent two decades, a common time frame for analyzing changes and trends in economic, social, or technological domains.

Disposable Income

Net income available to households after taxes and other deductions, used for spending or saving.

GDP

GDP represents the sum total of all monetary values of goods and services produced inside a nation's boundaries over a given time frame.

Trillion

A numerical value representing one thousand billion, or 10^12 in the United States and other countries using short scale numbering.