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    pricing decisions

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    Managers should base pricing decisions on both cost and market factors. In addition, they must also consider legal issues. Describe the influence that the law has on pricing decisions.
    "It is impossible to use Discounted Cash Flow methods for evaluating investments in research and development. There are no cost savings to measure, and we donââ?¬â?¢t even know what products might come out of our R&D activities." This is a quote from an R&D manager who was asked to justify investment in a major research project based on its expected net present value. How would you respond to this statement? Do you agree or disagree? Explain

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    Solution Preview

    Students should review the following statements and write 3ââ?¬"4 paragraphs that provide support for your answers:
    Managers should base pricing decisions on both cost and market factors. In addition, they must also consider legal issues. Describe the influence that the law has on pricing decisions.
    "It is impossible to use Discounted Cash Flow methods for evaluating investments in research and development. There are no cost savings to measure, and we donââ?¬â?¢t even know what products might come out of our R&D activities." This is a quote from an R&D manager who was asked to justify investment in a major research project based on its expected net present value. How would you respond to this statement? Do you agree or disagree? Explain
    The law can have several influences on pricing decisions. The ...

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    This solution gives you a detailed discussion on pricing decisions

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