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3 years ago

Why do so many new products fail? Give your opinion

2 answers:

7 0

The cost may be too much so people won’t want to buy. It could be because they haven’t reached out to the right audience or just no one has really noticed the product.

ratelena [41]3 years ago

4 0

Answer:

BECAUSE THEY SUCK

No jk

Explanation:

About 30 to 45% of new products fail to deliver any meaningful financial return. This typically happens due to a number of reasons, from poor product / market fit, failure to understand customer needs (or fixing a non-existing problem), to a lack of internal capabilities.

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Your firm is considering a project that will cost $ 4.548 million up front, generate cash flows of $ 3.50 million per year for

Alika [10]

Answer:

(a) It will have multiple IRRs

(b) The MIRR calculated is 10.18% . Going by MIRR result , this project will only generate returns that is equal to cost of capital(10%) .If there are other avaible more viable projects, it should be rejected ( Please see attached computation).

Explanation:

(a) The multiple IRRs occurs when cash flows change sign and result in more than one value for the IRR.

Application of IRR to value an investment is only suitable when the project has normal cash flows, i.e a negative initial cash flow (i.e initial investment) followed by a series of positive cash flows.

In this scenario, we have negative cash flow of $6m in year 4 which occured after positive cash flow of $3.5m per year from year 1 to 3. This typically make IRR unreliable. To overcome this limitation , we can use Modified Internal Rate of Return (MIRR)

(b) Please see attached for more details.

Download xlsx

4 0

3 years ago

Choose the statement that is correct. A. The MC curve intersects the AFC, AVC, and ATC curves at their minimums. B. Initially

shepuryov [24]

Answer: C. The ATC curve eventually slopes upward because average variable cost eventually increases

Explanation:

The Law of Diminishing Marginal Returns causes the Average Total Cost curve to eventually slope upwards because the Average Variable Cost will increase.

Why?

At first, with production increasing, a firm will be very efficient at producing a certain good thereby driving the cost down per unit. As time goes on however, the law of Diminishing Marginal Returns comes into play as more is invested into the business. The cost per unit will therefore rise which will lead to the ATC curve going upwards.

I have included a simple graph to illustrate.

If you need any clarification do react or comment.

3 0

3 years ago

Suppose Farmer Lane grows and sells cotton in a perfectly competitive industry. The market price of cotton is $1.64 per kilogr

Talja [164]

This is a cool question

3 0

3 years ago

The cpi for "all items" was 233.707 in january 2015, and 236.916 in january 2015. over this period, the rate of inflation as mea

Kazeer [188]

Assuming the second CPI should be January 2016, not Jan 2015:
To calculate the rate of inflation (rate of change in CPI)
( CPI(2016) - CPI(2015) ) ÷ CPI(2015) x 100%
(236.916 - 233.707) ÷ 236.916 x100% = 1.35%

6 0

3 years ago

RJR Nabisco (a U.S. company) allows a company in Singapore to use its brand name and recipes to produce and sell one of its prod

djyliett [7]

RJR Nabisco allows a company in Singapore to use its brand name and recipes to produce and sell one of its products - Planters Nuts. This type of international arrangement is called licensing.

<h3>What is licensing?</h3>

Generally, licensing is simply defined as granting someone formal authorization to do, have, or sell something: In many nations, licensing is used to determine who should sell what.

In conclusion, a license shows the authenticity of a producer.