Ajax predicts that if a customer pays on the first sale, it is assured that it is a reliable customer. As such, it expects that customer to generate a net profit of $350 per year for 12 years. Ajax calculates present value with a 15% rate of return. There is a 90% probability that Ajax will secure a reliable customer. However, if the customer defaults, Ajax will have to incur a loss of $500. Determine the expected benefit if credit is granted.

Until the mid-1990s, MGP Ingredients sold ethanol and animal feed. A steep drop in its sales led the company to focus on developing the first low-carb proteins and starches. The company was able to use existing manufacturing equipment to develop these food additives in response to the growing popularity of the Atkins Diet and similar food regimens. The realization that MGP could use the popularity of the Atkins Diet as a catalyst for success would have occurred in which stage of the new-product development process?

a. developing a business analysis b. establishing the new-product strategy c. exploring opportunities d. screening and concept testing

Scanner data collected during a one-day 20% off sale at a department store would be used to develop baseline data in a marketing-mix model

Indicate whether the statement is true or false