A Firm Has Three Different Investment Options,each Costing $10 Million

question 49

Multiple Choice

A firm has three different investment options,each costing $10 million.Option A will generate $12 million in revenue at the end of one year.Option B will generate $15 million in revenue at the end of two years.Option C will generate $18 million in revenue at the end of three years.Which option should the firm choose?

• A)Option A
• B)Option B
• C)Option C
• D)The answer depends on the rate of interest,which is not specified here.

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Definitions:

Puffery

The use of exaggerated or vague statements in advertising or sales that are subjective and not expected to be taken literally, used to create appeal without making concrete claims.

Sales Presentation

A pitch or communication aimed at convincing potential buyers to purchase a product by highlighting its benefits and value.

Visual Aid

An item of illustrative matter, such as a film, slide, or model, designed to supplement written or spoken information so that it can be understood more easily.

Actual Product

The tangible good or service offered to customers, encompassing its features, quality, branding, and packaging.