Which of the Following Best Defines Tangible Products

question 74

Multiple Choice

Which of the following best defines tangible products?

• A)They refer to those goods that cannot be perceived by touch.
• B)They refer to the physical entities or services that are offered to a buyer.
• C)They refer to goods that cannot be resold by a buyer.
• D)They refer to the essential benefits a buyer expects to receive from a service.

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Definitions:

Life Of Equipment

The estimated duration for which equipment can be expected to operate effectively and be used productively by a business.

Annual Cash Inflow

The total amount of money received by a company over a year, from operations, investments, and financing activities.

Discount Rate

The discount rate applied in the discounted cash flow method to calculate the current value of anticipated cash flows.

Net Present Value

A method used in capital budgeting to evaluate the profitability of an investment or project, by calculating the difference between the present value of cash inflows and outflows over a period of time.