Answer: Market Penetration Pricing.
Explanation:
MPP, Market Penetration Pricing is a where a company uses a strategy to attract customers to their product. Which also means lowing the price for customers to buy their products.
When lowing a price: This strategy is used to attract customers, they buy their product - then if they like it they will keep buying it even if the price is raised. This is a common strategy for tons of company brands.
Answer:
A. 2 years
B. 86.96
C. 16.46%
Explanation:
Payback period calculates the amount of time taken to recoup the initial investment made on a project.
The net present value substracts the present value of tax adjusted cash flows from the amount invested in the project.
Using the financial calculator to find the NPV:
Cash flow for year 0 = -500
Cash flow for year 1 = 300
Cash flow for year 2 = 200
Cash flow for year 3 = 150
Interest rate = 6%
NPV = $86.96
Internal rate of return is the discount rate that equates the tax adjusted cash flows from a project to the original amount invested.
Using the financial calculator to find the NPV:
Cash flow for year 0 = -500
Cash flow for year 1 = 300
Cash flow for year 2 = 200
Cash flow for year 3 = 150
Interest rate = 6%
IRR = 16.46%
<span>Since Time Warner has different divisions for different forms of media, it is a business that has multiple operating divisions. Having multiple operating divisions allows them to appeal to a greater audience, thus increasing their sales. More sales means more revenue, which is the main goal of the company.</span>
You would have to either make them pay another installment.
The firms may need to focus additional effort on retention strategies.
Retention strategies are means employed by firms to retain their customers both new and existing, over some specified period.
Where a company has high customer retention, it means customers would continue to patronize the company's products and not not defect to another product or business.
Customer retention process starts with the first point of contact in an organization and spread through the whole duration of the customer's relationship with the organization.
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