Use the Information Below to Answer the Following Question(s)

question 38

Multiple Choice

Use the information below to answer the following question(s) .Neptune Ltd.wants to expand its operations by manufacturing a new product line.New equipment will cost $225,000.Incremental sales are estimated at $150,000 per year for 6 years.Variable costs of producing the new product line are 52% of sales and incremental annual fixed costs are $25,000.The equipment can be salvaged after 6 years for 16% of its original cost.The company's required rate of return for new projects is 18%.Ignore income taxes.
-The time value of money

• A)is equal to the rate of inflation.
• B)includes the rate of inflation.
• C)is the same value for all companies.
• D)is equal to the bank prime rate.
• E)is the opportunity cost of not having the money today.

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Definitions:

Marketing Mix

The combination of factors that can be controlled by a company to influence consumers to purchase its products, traditionally identified as product, price, place, and promotion.

Market Share

The proportion of the overall sales in a market that a company, product, or brand secures.

Externally Focused Strategies

Business tactics that prioritize external market conditions and customer needs over internal considerations.

Internally Focused Strategies

Approaches within a business that concentrate on improving internal processes, resources, and capabilities to meet organizational goals and objectives.