Answer:
<em>Minimum of 2M USD is required to be invested. </em>
Explanation:
Chester's Elite product Cid Awareness = 72%
First 1M USD generates = 22% awareness
Second 2M USD generates = 23% awareness
Third 3M USD generates = 5%
1/3 of Cid's existing awareness is lost every year
if Cid Awareness = 72% this year .
Next Year it will be = 72-24 = 48%
Year after next year = 48-16 = 32% .
So,
we know that Agape's Awareness remains same next year = 77% .
So, Chester's Elite Product Manager should spend 2M USD in promotion in order to get ahead from Andrew's Agape Product.
Because by spending 2M USD Cid Awareness will become = 117% = 72 + 22+ 23.
So, after a year if it lost 1/3 then = 1/3 of 117 = 39
So, final awareness of Cid will be = 117-39 = 78%
And Andrew's Awareness will be = 77%
Hence, <em>minimum of 2M USD is required to be invested. </em>
