Term

Definition


Term
What is another name for Internal Rate of Return? 

Definition


Term
What is the formula for IRR? 

Definition
Today's Cost/ Yearly Expense 


Term

Definition


Term
What does a positive NPV signify? 

Definition
The fact that the deal is a money maker 


Term
What does a negative NPV signify? 

Definition
That the deal is a money looser 


Term
What can be learned if the IRR is less than the Cost of Capital? 

Definition
That the deal is a money looser 


Term
What is the formula for NPV? 

Definition
(PV of future money)(Today's Cost) 


Term
T/FThe IRR is given as a percentage? 

Definition


Term
What is the formula to find BookValue? 

Definition
BBookvalue=originalcostall depreciation 


Term
what is the Net Cash Flow formula? 

Definition
(sell priceBook Value)= Gain/loss*Tax% 


Term
Which is easier to calculate? NPV or IRR? 

Definition
NPV beause it will always give a definitive number 


Term
What is an additional benefit of NPV? 

Definition
It is easier to adjust for risk 


Term
The higher the risk...the higher the ...?? 

Definition


Term
The hurdle rate that is used in a netpresent 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 

Definition
5) discount rate and minimum desired rate of return 


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 

Definition


Term
what is the formula for markup %? 

Definition
((profit+Other costs)/Cost base)*100=markup % 


Term
what is the formula for total charge labor rate? 

Definition
hourly labor rate+(total OH/Total labor hours)+Profit per hour= 


Term
What is competitive bidding? 

Definition
Where two or more companies submit bids 


Term
computer integrated manufacturing 

Definition
A computer design and costing 


Term

Definition
a pricing approach in which the price is equal to cost plus a markup 


Term

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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Definition
a market in which the price does not depend on the quality sold by any one producer 


Term

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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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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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.) 


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) MarketShare Pricing 

Definition


Term
what costs are used in the Variable Method? 

Definition
Direct Materials, Direct Labor, Variable OH 

