Which of the Following Represents an Opportunity for Generating a New

question 111

Multiple Choice

Which of the following represents an opportunity for generating a new product?

• A)understanding the customer
• B)demographic change,such as decreasing family size
• C)changes in professional standards
• D)economic change,such as rising household incomes
• E)All of the above are such opportunities.

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Definitions:

Net Present Value Method

The Net Present Value Method is a financial analysis tool used to evaluate the profitability of an investment by calculating the present value of expected future cash flows minus the initial investment cost.

Future Cash Inflows

Projected future earnings or receipts in cash form, anticipated from investments, operations, or financing.

Cash Outflows

Money paid out by a business for its operational and investment activities.

Straight-Line Depreciation

A method of calculating the depreciation of an asset which assumes the asset will lose an equal amount of value each year over its useful life.