1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
BARSIC [14]
3 years ago
6

A local marketing firm is considering launching a new and extensive social media marketing campaign. This investment of resource

s is being looked at through the length of the project since it is anticipated to last at least 5 years. What financial calculation should be used to compute the investment's value, taking into account the time value of money?'
Business
1 answer:
slava [35]3 years ago
7 0

Answer:

The marketing firm should use the Present Net Value calculation to see if the marketing campaign will add value to the company.

Explanation:

The Present Net Value is a calculation that brings to present time all the future cash flows of an investment. Seeing the campaign marketing strategy as a potential investment, the firm has to identify the revenue entirely caused by the marketing campaign. Doing this, the firm will identify inflows (sales) per year that have to be subtracted to the outflows (marketing expenses). The net value of every year is discounted at a discount rate, and if the Present Net Value is higher than 0, it means that the marketing strategy is expected to bring value to the firm

You might be interested in
Last winter, a guest at a nearby motel fell through the ice and was not rescued in time. The motel’s name was included in news c
kaheart [24]
They should sell the info and make that cash cash money
3 0
3 years ago
Read 2 more answers
Choose the best answer:
Juli2301 [7.4K]

Answer:

Option B is correct.

Explanation:

Option A is incorrect because the expected return must be greater than the marginal cost of the capital which means that the Net Present Value must be positive.

Option B is correct because the increase in cost of debt or capital would increase the weighted average cost of capital. This is because weighted average cost of capital is directly proportional to cost of capital sources.

Option C is incorrect because its not the cost of one of the capital sources, actually it is the weighted average cost of capital which when starts increasing at a point due to increase in the level of financing is known as breaking point.

So the only statement that is correct is option B.

Kindly don't forget to rate the answer. Thanks

3 0
3 years ago
Assume that Delalo, Inc. is operating at full capacity. Also assume that assets, costs, and current liabilities vary directly wi
Murrr4er [49]

Answer:

Explanation:

External financing needed =

(1.10×$12,470) - (1.10× $1330)- $3200-$4600 - ($2,840+($45×1.10)=$616. 36.

The need for external financing is intermediate.

6 0
3 years ago
Read 2 more answers
A car dealership performs a credit check on a potential customer. according to the credit bureau, the customer's credit score is
Nikitich [7]
A 710 credit score is considered good. People with this credit score are likely to be approved for credit cards and loans with average interest rates and terms.
5 0
3 years ago
A stock price is currently $100. Over each of the next two six-month periods it is expected to go up by 10% or down by 10%. The
butalik [34]

Answer:

Please see attachment

Explanation:

Please see attachment

4 0
3 years ago
Other questions:
  • The annual output and prices of a 3-good economy are shown in the table below. instructions: enter your answers as whole numbers
    13·1 answer
  • Earnings per share (EPS)
    8·1 answer
  • Blue Corporation, a manufacturing company, decided to develop a new line of merchandise. The project began in 2018. Blue had the
    14·1 answer
  • ABC, Inc.'s income statement shows Service Revenue of $40,000, Wages Expense of $25,000 and Net Income of $1,000. The other expe
    14·1 answer
  • You just purchased a bond that matures in 12 years. The bond has a face value of $1,000 and a 7% annual coupon. The bond has a c
    7·1 answer
  • Bagel's food had to change the labeling on their products to meet the specification regarding vegetarian and non-vegetarian food
    11·1 answer
  • Boxwood Company sells blankets for $40 each. The following was taken from the inventory records during May. The company had no b
    11·1 answer
  • Patel Inc. factors $6,000,000 of its accounts receivables with recourse for a finance charge of 3%. The finance company retains
    12·1 answer
  • rhodes borrowed $5,000 by signing a 5-year note with an interest rate of 8%. on the date the note is signed, rhodes should
    7·1 answer
  • Ron Landscaping's income statement reports net income of $76,700, which includes deductions for interest expense of $12,600 and
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!