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Preview division divides M proportional to preview demand, i.e., each SKU n 2N gets fraction
This method is included because it is used by the case company, in combination with Method 2. Preview division was previously pro posed by Chambers and Eglese (1988). However, they restrict the method to grouping SKUs per ‘product line', while here it can be applied for any chosen way of grouping.
What will happen to the required rate of return (SML) if the following events occur: a) Inflation expectations increase b) Investors become more risk averse c)
Based on its Net Present Value (NPV), should the following project be accepted? Please assume a discount rate of 10%.
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