Products that belong to the category of "game changers" are considered as ________ innovations
A) new product
B) line extensions
C) continuous
D) dynamically continuous
E) discontinuous
E
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Avis positioned itself against market-leading Hertz by claiming, "We're number two, so we try harder." This is an example of ________
A) reminder advertising B) comparative advertising C) demonstration advertising D) a slice of life appeal E) a lifestyle appeal
Two projects being considered are mutually exclusive and have the following projected cash flows:
Year Project A Project B 0 -$50,000 -$50,000 1 $15,625 0 2 $15,625 0 3 $15,625 0 4 $15,625 0 5 $15,625 $99,500 If the required rate of return on these projects is 10%, which would be chosen and why? A) B, because of higher NPV. B) B, because of higher IRR. C) A, because of higher NPV. D) A, because of higher IRR. E) Neither, because both have IRRs less than the cost of capital.