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Anton [14]
2 years ago
8

In the individual level adoption process for a low involvement good, such as a new pack of gum or candy bar, what two steps in t

he adoption process are often switched? Group of answer choices interest and evaluation adoption and awareness trial and adoption evaluation and trial awareness and interest
Business
1 answer:
likoan [24]2 years ago
8 0

Answer:

evaluation and trial

Explanation:

In low involvement goods such as a new pack of gum or candy bar the evaluation and trial stages are often reversed. This is mainly due to there being very low risk for trying out a new unrecognized brand of such a product, this combined with the amount of time needed in order to evaluate other options greatly outweighs the benefit. Therefore most individuals try the product out instead of evaluating all options which isn't done for higher risk purchases.

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What is a trade off?
bezimeni [28]

a balance achieved between two desirable but incompatible features; a compromise.

"a trade-off between objectivity and relevance"

6 0
3 years ago
Brewster’s is considering a project with a 5-year life and an initial cost of $120,000. The discount rate for the project is 12
Ket [755]

Answer:

NPV = $27,792

Explanation:

Net Present Value = Present Value of Future Cash Flows - Initial Investments

To compute the Present value of Future Cash Flows, we need to first compute the cash inflows during the life of the project:

Year 1: 2,100 * 20 = $42,000

Year 2: 2,100 * 20 = $42,000

Year 3: 2,100 * 20 = $42,000

The units of Year 4 and Year 5 are calculated as follows:

⇒ (0.5 * 1,400) + (0.5 * 2,500) = 1,950 units

Year 4: 1,950 * 20 = $39,000

Year 5: 1,950 * 20 = $39.000

Now, discount the cash inflows at a rate of 12% to calculate the Present Value of Future Cash Flows

⇒ <u>42,000 </u>+ <u>42,000</u>+ <u>42,000</u> + <u>39,000</u> + <u>39,000</u>

     (1.12)^1      (1.12)^2   (1.12)^3    (1.12)^4      (1.12)^5

⇒  37,500 + 33,482 + 29,895 + 24,785 + 22,130  

⇒ $147,792

Net Present Value = Present Value of Future Cash Flows - Initial Investments

NPV = 147,792 - 120,000

NPV = $27,792

3 0
3 years ago
Lake Corp., a newly organized company, reported pretax financial income of $100,000 for 20X0. Among the items reported in Lake's
liubo4ka [24]

Answer:

b.$0

Explanation:

As we know that

When there is a temporary discrepancy between financial income and taxable income a deferred tax benefit or liability occurs. Temporary difference means an benefit or cost with respect to treatment that has just a timing gap.

Moreover, the Premium on officer's life insurance is tax deductible i.e $15,000  as it is paid by the company due to which difference arise between the financial and taxable income.

And,  

Interest received on municipal bonds $20,000 are mostly exempt from federal income tax.

Therefore, it shows no such difference as it indicates the permanent difference

6 0
3 years ago
A company just paid a $2 dividend per share. The dividend growth rate is expected to be constant at 10% for 2 years, after which
Olin [163]

Answer:

Do =  $2.00

D1= Do(1+g)1 =  $2(1+0.1)1 = $2.20

D2= Do(1+g)2 = $2(1+0.1)2 = $2.42

PHASE 1

V1 = D1/1+ke + D2/(1+ke)2  

V1 = 2.20/(1+0.11) + 2.42/(1+0.11)2  

V1 = $1.9820 + $1.9641

V1 = $3.9461

PHASE 2

V2 = DN(1+g)/ (Ke-g )(1+k e)n                                                                                                                                                                                                                                        V2 = $2.42(1+0.03)/(0.11-0.03)(1+0.11)2      

V2 = $2.4926/$0.0649

V2 = $38.4068

The current stock price is calculated as follows:

Po = V1 + V2

Po = $3.9461 + $38.4068

Po = $42.35

Explanation: This question relates to valuation of shares with 2-phase growth model.  The value of shares in the first phase will be determined by discounting the dividend for the 2 years by cost of equity. The dividends for year 1 and year 2 were obtained by subjecting the current dividend paid (Do) to growth rate.  

Moreso, the value of shares for the second phase was calculated by considering the last dividend paid(D2) and then subject it to the new growth rate. The adjusted dividend was then capitalized at the appropriate discount rate of the company.

5 0
2 years ago
What are the 5 factors taken into account when calculating a credit score?.
Lubov Fominskaja [6]

Answer:

Payment history. Payment history is the most important ingredient in credit scoring, and even one missed payment can have a negative impact on your score. ...

Amounts owed. ...

Credit history length. ...

Credit mix. ...

New credit.

Explanation:

6 0
1 year ago
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