Capital expenditures are situation to Capital Rationing.
Capital rationing is the act of putting restrictions on the variety of recent investments or projects undertaken through an organization. that is done via enforcing a better cost of capital for funding attention or by way of putting a ceiling on specific quantities of finances.
Capital rationing is a method utilized by businesses or traders to restrict the number of initiatives they tackle at a time. If there may be a pool of to-be-had investments that might be all expected to be worthwhile, capital rationing enables the investor or commercial enterprise owner to pick the maximum profitable ones to pursue.
Single-period capital rationing takes place while there is a shortage of finances for one length only. Multi-period capital rationing is where there may be a scarcity of budget in a couple of periods.
Capital Rationing approach: together with net present price (NPV), inner price of going back (IRR), and Profitability Index (PI) Rank them based on diverse criteria, viz. NPV, IRR, and Profitability Index.
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The innovation strategy for changing products and technologies that involves designing the organization to encourage creativity and the initiation of new ideas is known as exploration.
Creativity is the generation of novel ideas that can satisfy a perceived need or respond to an organizational opportunity. An innovation strategy for changing products and technologies in which organizations are designed to encourage creativity and the initiation of new ideas is called exploration.
Exploration encourages creativity and the development of new ideas, and Exploitation transforms those ideas into the manufacturing of everyday products. Organizational change is defined as the adoption of new ideas and behaviors by an organization.
The adoption of ideas and behaviors that are new to an organization's industry, market, or general environment is called organizational innovation.
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Answer:
$1,250
Explanation:
The computation is shown below:
Customer life time value = Gross contribution margin × (yearly retention rate ÷ 1 + yearly discount rate - yearly retention rate)
= $500 × (0.8 ÷ 1 + 0.12 - 0.80)
= $400 ÷ 0.32
= $1,250
The gross contribution margin would be
= $1,000 - $500
= $500
hence, the estimate for the lifetime value os $1,250
Answer:
A bank run occurs when many clients withdraw their money from a bank, because they believe the bank may cease to function in the near future
Explanation:
A bank run occurs when many clients withdraw their money from a bank, because they believe the bank may cease to function in the near future
Answer:
Helps a company jump-start demand
Explanation:
Format war in business is defined as competition for market dominance between producers of a particular type of technology with closely related functions.
Aggressive marketing are strategies employed to gain and ensure survival in a new market.
A typical example an aggressive marketing in the format war is selling a software at a low price but a relatively high price for support service.
One of the advantages is that it helps a company jump -stand demand among competitions
