Term
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Definition
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Term
| What is another name for Internal Rate of Return? |
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Definition
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Term
| What is the formula for IRR? |
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Definition
| Today's Cost/ Yearly Expense |
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Term
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Definition
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Term
| What does a positive NPV signify? |
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Definition
| The fact that the deal is a money maker |
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Term
| What does a negative NPV signify? |
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Definition
| That the deal is a money looser |
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Term
| What can be learned if the IRR is less than the Cost of Capital? |
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Definition
| That the deal is a money looser |
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Term
| What is the formula for NPV? |
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Definition
| (PV of future money)-(Today's Cost) |
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Term
| T/F-The IRR is given as a percentage? |
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Definition
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Term
| What is the formula to find BookValue? |
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Definition
| BBookvalue=originalcost-all depreciation |
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Term
| what is the Net Cash Flow formula? |
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Definition
| (sell price-Book Value)= Gain/loss*Tax% |
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Term
| Which is easier to calculate? NPV or IRR? |
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Definition
| NPV beause it will always give a definitive number |
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Term
| What is an additional benefit of NPV? |
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Definition
| It is easier to adjust for risk |
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Term
| The higher the risk...the higher the ...?? |
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Definition
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Term
The hurdle rate that is used in a net-present value analysis is the same as the firm's:
1) Discount Rate
2) IRR
3) Minimum desired rate of return
4) objective rate of return
5) discount rate and minimum desired rate of return |
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Definition
| 5) discount rate and minimum desired rate of return |
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Term
The net present value of a project is $13,458 at a cost of capital of 23%. The Internal Rate of Return would then be:
1) 12%
2) Greater than 12%
3) Less than 12%
4) Cannot be determined |
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Definition
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Term
| what is the formula for markup %? |
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Definition
| ((profit+Other costs)/Cost base)*100=markup % |
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Term
| what is the formula for total charge labor rate? |
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Definition
| hourly labor rate+(total OH/Total labor hours)+Profit per hour= |
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Term
| What is competitive bidding? |
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Definition
| Where two or more companies submit bids |
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Term
| computer integrated manufacturing |
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Definition
| A computer design and costing |
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Term
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Definition
| a pricing approach in which the price is equal to cost plus a markup |
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Term
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Definition
| setting a low initial price for a new product in order to penetrate the market deeply and gain a large and broad market share |
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Term
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Definition
| a market in which the price does not depend on the quality sold by any one producer |
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Term
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Definition
| An illegal practice in which the price of a product is temporarily to broaden demand. Then the product's supply is restricted and the price is raised |
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Term
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Definition
| the illegal practice of quoting different prices for the same product or service to different buyers, when the price differences are no justified by cost differences |
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Term
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Definition
| Firms whose products or service are determined totally by the market. The price you can charge is fixed by the market; especially for commodities (oil, milk, etc.) |
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Term
Which of the following terms describes a pricing strategy in which a new product's initial pricing is set relatively low in order to gain a large market share?
1) Penetration pricing
2) Price Skimming
3) Customer Pricing
4) Designed Pricing
5) Market-Share Pricing |
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Definition
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Term
| what costs are used in the Variable Method? |
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Definition
| Direct Materials, Direct Labor, Variable OH |
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