What Rate of Return Is Used in Calculating Net Present

question 68

Multiple Choice

What rate of return is used in calculating net present value of a project?

• A)Internal rate of return
• B)Rate of return required by the investment bankers
• C)Required rate of return
• D)None of these answers are correct.

---

Definitions:

Market Testing

The process of evaluating the viability of a new product or service through targeted research with a specific segment of the market.

National Distribution

A distribution strategy that aims to cover an entire country, making products available across all regions.

Environmental Scan

The process of collecting, analyzing, and interpreting data about external influences, trends, and threats that could impact an organization's strategy or operations.

New-Product Strategy Development

The stage of the new-product development process that defines the role for a new product in terms of the firm’s overall objectives.