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77julia77 [94]
3 years ago
12

The company that you manage has invested $5 million in developing a new product, but the development is not quite finished. At a

recent meeting, your salespeople report that the introduction of competing products has reduced the expected sales of your new product to $3 million. If it would cost $1 million to finish development and make the product, should you go ahead and do so? What is the most that you should pay to complete development?
Business
1 answer:
ycow [4]3 years ago
7 0

Answer: It depends on the variety of products that you sell. Besides, if you want to gain market share against your competitors maybe you should make this effort. But it depends on the cost of opportunity that you analize according to your cash and profits.

Explanation: Each situation should be analyzed taking into consideration the company and its market. Nowadays most of the companies are open systems that interact with different stakeholders such as competitors, suppliers, etc. If you want to gain market share you should either displace your competitors or attract the new demand.

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Industry-level strategy is a corporate strategy that addresses the question "how should we compete against a particular firm in
Alik [6]
The answer is false.
8 0
3 years ago
Jason is shopping for a new car. He completes new credit applications at four different dealerships. Will this affect his credit
trasher [3.6K]

Applying for a loan in each of the dealerships he visited will have negative consequences on his credit score.

The credit score is a term to refer to the score that people have toward the financial system. The credit score is a kind of business card for each person regarding their financial life.

One of the most common mistakes people make is when they make multiple credit applications when they intend to buy something because this is a bad practice for their credit score.

For example, if Jason completed credit applications in four different dealers, his score may drop because the entities that are going to lend him the money consider this activity as something negative.

In addition, people who apply for loans in different entities are generally forced to do so because they are denied the possibility of credit, that is, they have an unfavorable history to access a loan.

Learn more in: brainly.com/question/16663880

8 0
3 years ago
If project A generates $10 million of free cash flow over its five year useful life and project B generates $8 million of free c
fredd [130]

Answer: False

Explanation:

This seems to me like a True or False question and the answer would be False.

Payback period is calculated on the basis of the timing of cash flows and since we do not know the useful life of Project B neither do we know the timing of it's cash flows, we cannot say for certain that Project A has a shorter Payback period.

For example, the initial investment could be $5 million for instance but Project A only pays $10 million on its 5th year whereas Project B had a useful life of 4 years and paid $2 million each of those years. Meaning it would have paid back before the end of the 3rd year.

If you need any clarification do react or comment.

8 0
3 years ago
Evaluate the advantages and disadvantages of horizontal, vertical and conglomerate mergers.
Mrac [35]

Some of the advantages are related to increased market share and product diversification, while the disadvantages are less flexibility and culture shock.

<h3 /><h3>What is an organizational merger?</h3>

Occurs in the legal merger of two or more companies with the aim of forming a new organization.

The horizontal merger occurs between two competitors, the vertical between a buyer and a seller, and the merger of conglomerates occurs in companies from different areas of activity.

Therefore, despite the advantages of increasing market value and positioning, the merger between companies can be a risky strategy if it is not established in a planned way.

Find out more about organizational merger here:

brainly.com/question/8126554

7 0
2 years ago
On December 31, the trial balance shows wages expense of $1,050. An additional $350 of wages was earned by the employees, but ha
AnnZ [28]

Answer:

Please find the question and its complete solution in the attached file.

Explanation:

8 0
3 years ago
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