Each Month the Sales Staff of TechPro Products Makes an Average

question 116

Multiple Choice

Each month the sales staff of TechPro Products makes an average of 209 sales calls on prospective customers at a cost of about $4,600 (salary plus expenses) . What is the average cost of a sales call (to the nearest dollar amount) ?

• A) $22
• B) $25
• C) $28
• D) $31
• E) $34

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Definitions:

Net Present Value

A financial metric that calculates the present value of all future cash flows associated with a project, minus the initial investment cost.

Interest Rate

The percentage charged on a loan or paid on savings, representing the cost of borrowing or the reward for saving.

Present Value

The present value of an anticipated amount of money or series of payments, considering a certain rate of return.

Net Present Value

Net Present Value (NPV) is a method used in capital budgeting to evaluate the profitability of an investment or project, calculating the difference between the present value of cash inflows and outflows over a period of time.