Abco Pty Ltd Is Considering the Purchase of $60 000

question 39

Multiple Choice

Abco Pty Ltd is considering the purchase of $60 000 in tools.The manager estimates that the tools will generate $25 000 in savings during each year of a four-year life.The tools will be depreciated based on the following schedule.The expected tax rate is 30 per cent.What is the net present value of the investment,assuming an after-tax hurdle rate of 14 per cent?

• A) $5001
• B) ($9005)
• C) $23 700
• D) ($1720)

Understand the sales process and its components.

Identify and describe the key methods of prospecting.

Recognize the role and applications of CRM technology in sales.

Understand the importance and effectiveness of different communication methods in sales.

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Definitions:

Threat

An influence technique that is a communication taking the general form, “If you don’t do X (which I want), then I will do Y (which you don’t want).” See also Promise.

Reactance

Resistance to persuasion attempts that occurs when the persuasion attempt threatens the independence or freedom of the target.

Boomerang Effect

A phenomenon where an attempt to change behavior results in the opposite effect, particularly in persuasive communication.

Social Impact Factor

A term relating to the influence or effect that individuals or groups can have within a social context, though not standardly recognized in academic literature on impact measures.