Answer:
A. return on marketing investment (ROMI)
Explanation: ROMI is used to measure the overall effectiveness of marketing campaign.
Answer:
$52,435.00
Explanation:
After 3 years the future value of 100,000 at 6 percent will be
FV = PV × (1+r)n
=FV = 100,000 x (1 +0.06)3
FV = 100,000 x 1.191016
FV = 119, 101.60
The interest will be 119, 101.60 - 100,000
=19,101.60
The depreciation over 9 year period, per year will be
=1/9 x 100,000
=11, 111.11 per year
3 year depreciation = 33,333.33( 11,111.11 x 3)
The investment must generate at least
19,101.60 + 33,333.33
=$52,434.93
=$52,435.00
Answer:
<u>$26000</u>
Explanation:
from the question;
check per day; 20000
delay: 3 days
checks to pay suppliers; 17000
clearing time 2 days
<u>we first calculate collection flaot:</u>
collection flaot = average amount of check x outstanding days
= 20000 x 3
= 60000
now we have to calculate <u>disbursements float:</u>
average amount of check x days to clear
= 17000 x 2
= 34000
with these two values we can get the net float
= collection flaot - disbursements float
= 60000 - 34000
= <u>$26000</u>
Answer: Proposal C
Explanation:
The way to solve this is to calculate the Present Values of all these payments. The smallest present value is the best.
Proposal A.
Periodic payment of $2,000 makes this an annuity.
Present value of Annuity = Annuity * ( 1 - ( 1 + r ) ^ -n)/r
= 2,000 * (1 - (1 + 0.5%)⁻⁶⁰) / 0.5%
= $103,451.12
Proposal B
Present value = Down payment + present value of annuity
= 10,000 + [2,200 * ( 1 - ( 1 + 0.5%)⁻⁴⁸) / 0.5%]
= 10,000 + 93,676.70
= $103,676.70
Proposal C
Present value = Present value of annuity + Present value of future payment
= [500 * (1 - (1 + 0.5%)⁻³⁶) / 0.5%] + [116,000 / (1 + 0.5%)⁶⁰]
= 16,435.51 + 85,999.17
= $102,434.68
<em>Proposal C has the lowest present value and so is best. </em>