Answer:
The NPV of going directly to market and the NPV of test marketing before going to market is $22.5 million and $24.97 million respectively
Explanation:
The computation of the NPV of going directly to market is shown below:
= Present value of the payoff i.e market × success percentage + Present value of the payoff × failure percentage
= $33.5 million × 50% + $11.5 million × 50%
= $16.75 million + $5.75 billion
= $22.5 million
And, The computation of the NPV of going directly to market is shown below:
= (Present value of the payoff i.e market × success percentage + Present value of the payoff × failure percentage) ÷ ( 1 + discount rate) - spending amount
= ($33.5 million × 80% + $11.5 million × 20%) ÷ ( 1 + 0.11) - $1.25 million
= ($26.80 million + $2.30 million) ÷ (1.11) - $1.25 million
= ($29.10 million) ÷ (1.11) - $1.25 million
= $24.97 million
Answer:
Option A Principal Amount
Explanation:
Because the amount paid additional to the interest is repayment of loan which is the principal amount. So the option A is only correct. The other options discusses about interest which is not the portion of the amount initially borrowed.
Answer:
c. Optimum replacement interval (ORI)
Explanation:
Optimum replacement interval used to estimate the most cost effective time to replace an asset on the basis of their replacement cost.
There needs to be a balance between the replacement cost and the value that is being lost by changing the asset.
The useful value must be low to justify replacement cost.
For example if the cost of maintaining a machine has increased a lot as a result of wear and tear, it will be more cost effective to make a replacement in order to minimise cost and increase efficiency
Answer:
False
Explanation:
Signing a project charter rarther than project portfolio signal the trasition of a project from high level initiating phse into a more detailed project planning stage.
cheers.
