If the Net Present Value of an Investment Proposal Is

question 3

Multiple Choice

If the net present value of an investment proposal is positive, what conclusions can be drawn? (Identify all correct answers.)

• A) The discount rate used is less than the investment's estimated return.
• B) The investment's estimated return exceeds the minimum return required by the investor.
• C) The discount rate used equals the minimum return required by the investor.
• D) The investment generates cash flows with a present value in excess of its cost.

Explain the use of customer-oriented metrics in evaluating marketing effectiveness.

Understand the impact of technology on the decline of mass media advertising.

Comprehend the limitations and applications of the BCG matrix in strategic planning.

Recognize the importance of product hierarchy in customer loyalty and product strategy.

---

Definitions:

Direct Materials

Direct materials are raw materials that are directly incorporated into a final product and are directly attributable to the product being manufactured.

Work in Process Account

A Work in Process Account tracks the costs associated with unfinished goods that are still undergoing manufacturing or production processes.

Product Costs

Direct costs associated with manufacturing a product, including materials, labor, and overhead expenses.

Valuation of Inventories

The process of determining the monetary value of inventory, using methods like FIFO, LIFO, or weighted average cost.