An Analytical Tool That Enables Managers to Calculate Profits at Various

question 168

Multiple Choice

An analytical tool that enables managers to calculate profits at various points along an industry value chain is called a ________.

• A) activity chain
• B) profit pool
• C) U-curve
• D) S-curve

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Definitions:

Annual Cash Operating Costs

Annual Cash Operating Costs represent the total amount of money a business spends on operating activities during a year, excluding non-cash expenses.

Salvage Value

The projected value left in an asset after it has completed its useful life.

Net Present Value

A calculation that compares the value of a dollar today to the value of that same dollar in the future, taking inflation and returns into account.

Discount Rate

The interest rate used to discount future cash flows to present value in various financial models.