A Project Has an Initial Cash Inflow of $95,500 and Cash

question 31

Multiple Choice

A project has an initial cash inflow of $95,500 and cash flows of -$48,700 in Year 1 and -$57,200 in Year 2.The discount rate is 9 percent.Should this project be accepted or rejected based on IRR? Why?

• A)Accepted: because the IRR of 6.98 percent is less than the discount rate
• B)Accepted: because the IRR of 8.21 percent is less than the discount rate
• C)Accepted: because the IRR of 8.78 percent is less than the discount rate
• D)Rejected: because the IRR of 8.21 percent is less than the discount rate
• E)Rejected: because the IRR of 6.98 percent is less than the discount rate

Grasp psychographic segmentation and how lifestyle, personality, and values influence consumer behavior.

Understand behavioral segmentation and the significance of usage rate, loyalty, and benefits sought in marketing strategies.

Recognize the concept of customer lifetime value and its relevance in focusing marketing efforts.

Identify the application of the 80/20 rule in marketing and its implications for resource allocation.

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Definitions:

Liable

Legally responsible or obligated to make amends for harm caused by one's actions or negligence.

Action in Negligence

A legal claim brought against someone for harm caused by their failure to act as a careful person would under similar circumstances.

Doctrine of Strict Liability

A legal principle holding parties responsible for damages or harms caused by their actions, regardless of fault or intention.

Fault

A legal term often used in negligence cases, referring to responsibility or blame for an accident or misdeed.