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FastBucks Inc. has offered to set up a concentration banking system that will save three days of mail float and one day of presentation float. Your receivables average $20,000 per day and the opportunity cost of funds is 6 percent. How much would you be willing to pay FastBucks annually to administer the system perpetually?

A) $4,800 B) $80,000 C) $2,400 D) $40,000

Procter & Gamble introduced its Duncan Hines ready-to-spread frosting in a small geographic area

When General Foods became aware of the product, it rushed to market its own Betty Crocker ready-to-spread frosting, which eclipsed the Duncan Hines product introduction. This act illustrates ________. A) why many companies engage in test marketing B) one of the problems associated with test marketing C) why prototypes are so important D) how idea screening can make a product a commercial success E) the variety of sources for idea generation