Give an example of an option to expand a project. Why might this be of value?
What will be an ideal response?
The estimated cash flows associated with a project can change over time, making it valuable to expand a project. The
flexibility to adjust production to demand has value. For example, a firm might deliberately build a production plant
with excess capacity so that if the product has greater than-anticipated demand, the firm can simply increase
production. Alternatively, taking on this project might provide the firm with a foothold in a new industry and lead to
other products that would not have otherwise been feasible. This reasoning has led many firms to expand into
e-businesses, hoping to gain know-how and expertise that will lead to other profitable projects down the line. It also
provides some of the rationale for research and development expenditures to explore new markets.
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Words such as "similarly", "likewise" and "still" indicates what type of transition?
A) Additional detail B) Comparison C) Cause and effect D) Illustration E) Condition
In a push promotion strategy, the producer promotes a product to channel members who in turn promote it to final consumers
Indicate whether the statement is true or false