The greater the emphasis on intangible activities, the more management's attention will be directed to:

Which type of strategy is best utilized for exiting a market by selling or closing down the business or eliminating the product?

A) a harvest strategy B) a monetize strategy C) a horizontal integration strategy D) a vertical integration strategy E) a divest strategy

After a trip to Bordeaux France you are considering opening a restaurant based on Restaurant L'Entrecote. You will offer a fixed menu of salad, steak and French fries

Your innovation is that you will use a bordelaise (red wine) sauce instead of a tarragon butter sauce. You plan to run the restaurant for two years and then retire. Start-up costs, to be incurred immediately, are $500,000. Start-up costs include kitchen equipment, kitchen supplies, renovations, furniture, fixtures, and the point-of-sales system. Assume that all of those assets are classified as 5-year property. The assets can be sold for $150,000 after two years. You expect 100 diners per night. The restaurant will be open for 300 nights per year. The average diner orders food with a menu price of $35 and beverages with a menu price of $15. Food costs are 34% of the menu price and beverage costs are 50% of the menu price. The nightly wages are $2,160 (for the chef, 5 kitchen staff, a bartender, the Maitre d' and 10 wait staff). Municipal tax, rent, and utilities, are $41,400 per annum. Assume that all revenues and operating expenses are received (paid) at the end of each year. The small business tax rate is 20%. The cost of capital is 10%. When the restaurant opens you will have to invest in an inventory of wine, beer and liquor costing $50,000. What is the NPV for the proposed acquisition if the cost of capital is 12%? MACRS Depreciation Rates Year 3-Year 5-Year 1 33.33% 20.00% 2 44.45% 32.00% A) $102,880 B) $(9,586 ) C) $(7,812 ) D) $432,880 E) $128,600