If you don't set expectations high enough, too few customers will be willing to try your product. The result will be a tiny base of highly satisfied customers, which usually isn't enough to sustain a business it will happen <span>when a marketer falls into the trap of under promising</span>
For the first investment the solution as follows
Annual depreciation
600,000÷6 years=100,000
Net annual cash flows
100,000+155,000=255,000
Present value
255,000×4.11141+16,600×0.50663
=1,056,819.608
Net present value
1,056,819.608−600,000=456,819.608
For the second investment the solution as follows
Annual depreciation
390,000÷8 years=48,750
Net annual cash flows
48,750+60,000=108,750
Present value
108,750×4.96764+24,500×0.40388
=550,125.91
Net present value
550,125.91−390,000=160,125.91
Grace period allows an insured's life insurance policy to remain in force even if the premium was not paid on the due date.
<h3>
What is grace period?</h3>
A life insurance policy won't lapse during the grace period even though a payment is past due after a missed insurance premium is due. Every state in the US requires the grace period, a highly helpful provision, to be included in every life insurance policy. Depending on the rules of each state, the minimum grace period is from 28 to 31 days; however, some businesses may grant extended grace periods.
When the required number of days have gone, the grace period formally ends at the close of business on the day the missing premium payment is due. The grace period in a whole life, universal life, or variable universal life policy would only be applicable if the premium payment was past due and there was no cash value left in the policy. It is unlikely that a policy will enter "grace period status" if a premium payment is missed if cash value is still present as long as it may be utilised to pay the premium or at the very least draw a loan to pay the premium.
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<span>One of the young and
successful entrepreneur Mubarak Muyika of Kenya. AT age 20 years old, he
founded Zagace Limited is a software helping companies evaluate their
inventory: accounting, payroll, stock management, marketing, etc. Next is Bheki
Kunene of South Africa. AT age 27, he founded Mind Trix Media providing jobs
and a profit.</span>
Answer: price leadership
Explanation: Price leadership is a circumstance where one business, typically the dominant one in its market, sets prices that its rivals follow closely.
This business is typically the one with the minimum cost of production, thus being able to outperform the prices charged by any rival who tries to set their prices below the price range of the market leader.
Rivals could increase prices than the cost leader, but this would likely lead to lower share of the market unless rivals were able to distinguish their goods adequately.
Hence from the above we can conclude that the given case depicts price leadership strategy.
