Answer: He should decline production of the machine.
Explanation:
Analyzing the problem, we can determine if he should proceed or not by calculating the Net present value. That is present value of the machine in terms of perpetuity as it will be used forever and the cost incurred in its production.
Given the following ;
To manufacture $200 = 1 year, meaning
Amount or yearly payment = $200
Cost of machine = $2,000
Interest rate(r) = 11.5% = 0.115
Recall;
Present the value if perpetuity ;
(Payment per period ÷ rate)
= $200 ÷ 0.115 = $1739.13
Net present value = $1,739.13 - $2000 = - 260.87
Given the negative value of NPV, the cost outweighs the benefit, hence, he should decline.
Answer:
lagged effect
Explanation:
Integrated marketing communication is one that involves the use of all form of communication to obtain a more effective promotion by a company.
The use of combination of promotion tools gives a better effect than each one in isolation.
A major difficulty in measuring IMC is the lagging effect.
Lagging effect is the difference in time between when marketing effort is made and when customers respond to these efforts.
For example consumers do not act immediately after receiving a marketing communication.
Not trying to be rude but that’s too much for too little amount of points
That’s technically an entire book page of reading
Answer:
Co-Creation of value
Explanation:
Various action that increases the worth of business, services and goods is called value creation.
Co-creation of value is a business strategy. In this strategy the company encourages and promotes active involvement of the customer] for the creation of customized or on demand products. With co-creation the customers get exactly the type of product they want. Customer input plays an important role in value co creation.
Some shoe companies allows the customers to give their input so that they can customize the shoe as per the customers needs, it is an example of value co creation.