21. GM offers cars at various price points. Get customers in with low-priced, low-margin entry point to move them up high-priced cars. What business model is this an example of?

Entrepreneurial Model

Customer Service Model

Profit Pyramid Model

Time Model

Efficiency Model

22. NIO waits until the electric vehicle market is standardized and then enters market with low-cost option. What business model is this an example of?

Entrepreneurial Model

Customer Service Model

Profit Pyramid Model

Time Model

Efficiency Model

23. A $10.00 million investment in a piece of equipment (with a useful life of five years) expects to receive the following net cash flows in savings: $1.75 million annual net cash flow savings in years one and two ($3.50 million over those two years); $1.50 million in annual net cash flow savings in years three and four and five ($4.50 million over those three years). This $10.00 million purchase of equipment will take place on 12/31/20, and these projected net cash flows will be received at the end of each year (12/31 annually). The equipment has a scrap value, and the company expects to sell the equipment at the end of the five years and receive $5.00 million in net proceeds from the sale. What is projected five-year internal rate of return of this investment?

2.7%

6.8%

7.5%

10.5%

24. In the VRIN test, what is necessary for the short-term and is lacking by the rivals?

Valuable

Rare

Inimitable

Non-Substitutable