Answer:
The present value of the future cash inflows from this investment is $19,740
Explanation:
Profitability Index is a useful tool for ranking project because we can know the amount/ value created by per unit of investment.
Profitability Index = Present value of future cash flow/ Initial Investment
↔ 0.329 = Present value of future cash inflow/ $60,000
↔ Present value of future cash inflow = 0.329 * $60,000 =$19,740
Answer:
13
Explanation:
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According to the policy loan clause, the policy owner may borrow any sum up to the policy's cash value. As a result, choice (C) is the best way to respond.
<h3>What is policy loan?</h3>
A policy loan is given out by an insurance provider and is secured by the cash value of the borrower's life insurance policy. A "life insurance loan" is another name for it. They used to be renowned for having cheap interest rates, but that isn't necessarily the case now.
Even though they have limitations, policy loans typically provide easy access to money. When a universal or whole life insurance policy has built up cash value, policy loans may be taken out.
Hence, option (C) is the accurate one.
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The <u>most likely outcome</u> when a firm is thinking about adding a product to its product line is D. The new product can be advertised alongside existing products
<h3>What is product advertising?</h3>
Product advertising:
- Is a management effort geared towards creating a demand for a product.
- Promotes consumer awareness.
- Fosters consumer interest in the product.
- Encourages consumers to make purchase decisions quickly as they see the product.
Thus, most likely, adding a product to the product line will help the new product to be advertised alongside existing ones.
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<h3>Question Completion with Answer Options:</h3>
A. It will be difficult to manufacture the product.
B. The company will have to work hard to build up the brand.
C. The new product is certain to be accepted by the market.
D. The new product can be advertised alongside existing products.
E. It will take a long time for customers to feel loyal to the product.