"Eastern Corporation has $21,000,000 in equipment that has a 15 year class life. The equipment is 8 years old. Eastern is sellin
g the equipment for $10,000,000. Eastern uses simplified straight line depreciation (zero salvage value) and has a marginal tax rate of 34%. What is the terminal cash flow? Assume no working capital."
Interest is compounded in savings accounts and me to reduce the amount that I must deposit today and still have my desired $1 million on the day I retire then I should either, invest in a different account paying a higher rate of interest meaning the invested amount will be compounded at a higher rate thus my initial investment amount requirement reduced. Or, since compounded interest is a function of time, if I retire later, that would mean a longer time for my initial investment to compound to $1 million, thus reducing my initial investment amount requirement.
We can conclude that they implement the product and service differentiation strategy.
Explanation:
The product and service differentiation strategy is a marketing strategy that consists of increasing consumer perception and satisfaction through products and services that are different from the competition, whether through design, added benefits, etc. Differentiation helps a company to become more competitive in a homogeneous market and increases brand value and consumer loyalty.
