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3 years ago

Bill’s Surf Shop needs to advertise. Which option provides the largest frequency? a. direct mail b. TV c. the Web d. billboards

Business

1 answer:

ad-work [718]3 years ago

3 0

Answer:

TV (television)

Explanation:

Advertising frequency is defined as the number of time an advert is viewed by individuals once it come online.

The higher the number of times a user is exposed to an advert in a given time frame the higher the advertising frequency.

Normally it take exposure of 5 times and above for an advertisement to be effective.

Bill’s Surf Shop will have more advertising frequency on television because all categories of customers watch the television. Including children, teenagers, middle aged, and older people.

The other mediums will attract less people. Direct mail is only for those with emails, the web is for technologically savvy clients, and billboards only for those that view them in their location.

Television gives a larger audience.

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2 years ago

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3 years ago

Compute the payback period for each of these two separate investments:

Gnesinka [82]

Answer:

A. 1.89 years

B. 2.33 years

Explanation:

According to the scenario, computation of the given data are as follows,

(A) After-tax income = $72,115

Expected cost = $250,000

Useful life = 4 years

Salvage value = $10,000

Depreciation Value = ($250,000 - $10,000) ÷ 4 = $60,000

Annual net cashflow = After tax income + Depreciation

= $72,115 + $60,000 = $132,115

Payback Period = Machine expected cost ÷ Annual net cash flow

= $250,000 ÷ $132,115

= 1.89 years

(B) After-tax income = $39,000

Machine cost = $200,000

Useful life = 8 years

Salvage value = $13,000

Depreciation value = ($200,000 - $13,000) ÷ 4 = $46,750

Annual net cashflow = After tax income + Depreciation

= $39,000 + $46,750 = $85,750

Payback Period = Machine expected cost ÷ Annual net cash flow

= $200,000 ÷ $85,750

= 2.33 years

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