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(Ignore Income Taxes in This Problem

question 108

Multiple Choice

(Ignore income taxes in this problem.) The management of Crail Corporation is considering a project that would require an initial investment of $51,000. No other cash outflows would be required. The present value of the cash inflows would be $60,180. The profitability index of the project is closest to:

Learn about the components of relationship capital and its relevance to competitive advantage.

Understand the difference between business and consumer markets in terms of relationship development risks.

Differentiate between transactional costs, life-cycle costs, and the broader concept of value in customer relationships.

Understand the historical shift in marketing strategy priorities from short-term sales maximization to long-term customer relationship cultivation.

Definitions:

General Revenue Sharing

A federal program in the United States (1972-1987), which provided state and local governments with unrestricted funds to be used at their discretion for a wide range of public purposes.

Block Grants

Financial assistance provided by the federal government to state or local governments for broad purposes, with relatively few restrictions on how the funds may be spent.

Categorical Grants

Funding from the federal government to state or local governments for specific purposes and subject to detailed conditions.

New Federalism

A political philosophy of devolution, or the transfer of certain powers from the United States federal government back to the states, initiated in the 1970s.