Exam 3: Product Design and Development

Why is it beneficial for a firm to use a contract manufacturer or contract service provider? Provide at least one example of a firm that uses a contract provider and the benefit experienced because of this.

Products that can be easily recycled generally create positive impressions among consumers.

All of the following are leading to shortened product life cycles except?

Customers are often more involved in the design of services than in the design of goods.

The simultaneous design of products and their manufacturing and support processes is known as concurrent engineering.

The automotive industry often uses __________ to produce components parts.

A product design resulting in a price more than customers might reasonably expect to pay is an example of?

When a firm does not have core competencies in an area needed to produce certain products, it may choose to rely upon a(n)?

Which Excel function is used to calculate net present value?

"Do we have realistic sales and cost estimates?" is what type of product screening issue?

____________ is the practice of copying what others do best.

A firm is trying to determine which of two products it should launch. Product A has an expected life of three years. It will bring in cash flows of $10,000 in each of the three years. Product B has an expected life of two years. It will bring in cash flows of $15,000 in each of the two years. Assume a discount rate of 8%. Which product should the firm, based on NPV alone, select?

Which question is not associated with the product when conducting product screening?

A spice and seasonings manufacturer sources many of its raw materials from an emerging market. How would this manufacturer ensure that its raw materials were being produced in a sustainable manner?

Products that can be easily recycled drive ________ impressions among consumers.

The integration and improvement of economic, environmental, and social/ethical performance of products and services refers to __________.

A firm is trying to determine if it should launch a product. The product has an expected life of three years. It will bring in cash flows of $10,000 in each of the three years. The company estimates that it will invest $20,000 in product research and development costs. What is the estimated IRR for this product? Choose the IRR value that is closest to the amount invested.

Develop a house of quality for a hypothetical cell phone manufacturer. What would be potential customer requirements? Technical characteristics? How would your product likely rate against competitors?

A firm is trying to determine which of two products it should launch. Product A has an expected life of three years. It will bring in cash flows of $11,000 in each of the three years. Product B has an expected life of two years. It will bring in cash flows of $15,000 in each of the two years. Assume a discount rate of 8%. Which product should the firm, based on NPV alone, select?

A firm estimates that it will receive cash flows from a new product of $150,000 in Year 1, $220,000 in Year 2, and $150,000 in Year 3. If a discount rate of 7% is assumed, what is the NPV of this product's cash flows?