What is the present value of an annual payment of $1,500 discounted back 15 years at an annual rate of return of 3%?

Which of the following explains stretching out the life cycle?

A) Increasing the duration of the present stage of the PLC. B) Using the strategies of the previous stage in the next stage. C) Looking ahead to the next stage and planning changes in the product. D) Using the strategies of the decline stage in the growth stage.

Which of the following statements is true regarding related diversification?

A) The bureaucratic costs associated with managing related diversification are much greater than those associated with unrelated diversification. B) Considerably more communication and coordination are needed to create value from unrelated diversification than from related diversification. C) A functional structure is most suitable for an organization that is pursuing a strategy of related diversification. D) If unrelated diversification is to provide the gains comparable to those obtained from related diversification, a much larger corporate headquarters staff is required to coordinate interdivisional activities.