Answer:
A) $83
Explanation:
First, find aftertax OCF per year
aftertax OCF = (Operating benefit - depreciation)*(1-tax) +depreciation
Depreciation per year = 10,000/5 = 2,000
Tax = 34%
aftertax OCF per year = (3,000 - 2,000)*(1-0.34) + 2,000
= 660 +2,000
= 2,660
Next, find the PV of the aftertax OCF per year. It is an annuity;
PMT = 2,660
N = 5
I/Y = 10%
FV = 0
then CPT PV = 10,083.493
Subtract the initial cost of the machine to find the Net Present Value (NPV);
NPV = -$10,000 + $10,083.493
NPV = $83.493
The type of marketing that this is is called business to customer strategy. This is called B2C marketing.
<h3> </h3><h3>What is a business to customer strategy?
</h3>
This is a type of marketing strategy that has to do with the approach that businesses take to sell their goods and their services to the customers that they have.
The business here is utilizing the fact that they game is at the half time to sell their goods.
At this time, a lot of the audience would feel the need to be refreshed and would need something to eat
Read more on business to customer strategy here:
brainly.com/question/24803497
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