Nike's Failed SCM Implementation Resulted in All the Following Except

question 28

Multiple Choice

Nike's failed SCM implementation resulted in all the following except:

• A) $100 million in lost sales
• B) 50% of the Nike factories were closed
• C) Depressed stock prices
• D) Class action lawsuits

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Definitions:

Payback Period

The timeframe required for an investment to generate cash flows sufficient to recover its initial cost.

AAR

Average Annual Return, which measures the average return on an investment over a multi-year period.

Multiple Rates Of Return

One potential problem in using the Internal Rate of Return method if more than one discount rate makes the Net Present Value of an investment zero.

Net Present Value

A process that evaluates how the worth of a dollar now compares to its worth in the future, factoring in both inflation and investment returns.