Answer:
True
Explanation:
Consumers mainly sports persons natural liking for their favourite sports brand exists. Sports persons like to buy and wear their favourite brand of shoes, clothed and apparels.
These brands remained immune to threats from other the rival brands because they remain the favourite of the respective sports persons. In other words they remain safe.
The sport person like to wear these brands and perform in the competition. But when the performance does not meet the sports person's expectations, they try to switch brands and go for some other brands.
Thus the answer is True.
Answer:
The Net Present Value (NPV) of this project is <u>$93,405.59</u>.
Explanation:
Note: Find attached the excel file for the calculation of the NPV of this project.
Net present value (NPV) refers to the present value of cash inflows minus the present value of cash outflows over a specified period of time.
On its own, present value (PV) refers the value that a future sum of money or stream of cash flows has now or currently given a specified rate of return. The formula for calculating the PV is given as follows:
PV = FV / (1 + r)^n
Where,
FV = Future value
r = discount rate. This is given as 10% in this question
n = Relevant period, e.g. year
The above explanation and formula together with other stated formulae in the attached excel file is used in calculating the NPV of this project.
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