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GenaCL600 [577]
3 years ago
7

Your friend brought up an investment opportunity that will generate cash flows of $5,000, $5,300, and $6,000 next three years, r

espectively. If your required rate of return on this investment is 12%, how much at most are you willing to pay?
Business
1 answer:
ahrayia [7]3 years ago
8 0

Answer:

The most I could pay for the investment is $12,960.09  

Explanation:

The maximum a rational investor could pay acquire an investment is the present value of all future cash flows receivable from the investment.

In the case, the present of all cash flows is calculated thus:

Years  Cashflows [email protected] 12% PV

1          5000 0.892857143  4,464.29  

2          5300 0.797193878  4,225.13  

3           6000 0.711780248  4,270.68  

   Total of present values               12,960.09

The discounting factor is calculated using the formula :

1/(1+r)^n where r and n are rate and number of years respectively.                                          

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What are the three stages at which advertising evaluation occurs, and what do marketers evaluate at each stage? What are the dif
krek1111 [17]

Answer:

There are 3 phases of advertising: Awareness (audience building), Consideration (lead generation and obtaining authority), and Conversion (nurture and sales). Advertising has a history going back millennia. In fact, the origins of advertising go back to ancient times or even earlier, right to the stone age. From rock carvings and papyrus to the radio and T.V. and the latest addition of online advertising, the journey of advertising has been a most metamorphic one.

1. Pre-test and Post Test: Pre-test implies testing advertising message before it is sent to specific media.

2. Communication and Sales Effect Test.

3. Laboratory and Field Test.

4. Experimental and Survey Test.

5. Message and Media Effect Test.

Inquiry tests: It is controlled experiment conducted in the field. In inquiry test, the number of consumer inquiries produced by an advertising copy or the medium is considered as to the measure of its communication effectiveness.

Copy testing often evaluates ad based on demographics and certain changes in the ad are made with respect to its demographics. Memory tests (recall/recognition), direct response tests, persuasion tests, continuous measurement tests, psychological response tests are some of the quantitative methods of copy testing.

(My Answer^)

Explanation:

(Plato Example Answer) : Advertising evaluation can occur at three different stages: during ad in preparation, after the ad launches in the market, and while the ad campaign is running in the market.

During the first stage before the ad’s launch, marketers use pre-testing methods to evaluate an ad’s effectiveness. They help a company identify and correct flaws in its ad copy through trials or surveys. Randomly selected consumers view the ad. Based on the data gathered from their responses, the company will make changes in the ad copy or select one ad from among different ad alternatives. Various aspects of an ad copy, such as colors, message, language, design, etc., might change or gain further approval based on the results of these tests. Pre-testing methods include consumer jury methods such as an order of merit test or paired comparison test, advertising concept test, direct mail test, and in-home projection test.

During the post-testing stage after the ad’s market launch, marketers use post-testing methods to measure ad effectiveness. These tests help in gauging the immediate effect that the ad campaign has had on consumers and determine whether the ad has succeeded in achieving its goals. Post-testing methods also make use of randomly selected samples of respondents from the market. The methods include a rating scale test, day-after recall test, portfolio test, and association test.

The ad campaign is continuing its market run. During this stage, marketers use concurrent testing methods to evaluate ad effectiveness. If properly implemented, the tests can help the company to adapt an ad campaign to make it more effective. Concurrent testing methods also help advertisers to decide which expenses to curtail. These methods depend on observing consumers’ reactions to the ad and thus determining how consumers perceive the ad. Concurrent testing methods include telephone surveys, interview tests, and passers-by count tests.

If I were an advertiser, I would spend money on pre-testing methods because they would help me to make critical changes in an ad’s content before it goes out in the market. These methods of measuring ad effectiveness are more proactive. For instance, an advertising concept test can help in gathering consumer responses regarding various aspects of an advertisement. I would make sure that the sample selected for these tests is large enough so that it would leave little room for uncertainty regarding the ad’s effectiveness. In addition, I would use more than one method to measure the effectiveness of my ad campaign.

4 0
3 years ago
In the planning process, _____ are the specific results or desired outcomes that one intends to achieve.
ollegr [7]
<span>Planning (also called forethought) is the process of thinking about and organizing the activities required to achieve a desired goal. It involves the creation and maintenance of a plan, such as psychological aspects that require conceptual skills.</span>
3 0
3 years ago
Many people believe that because wages are lower in developing countries than in developed countries, competition from developin
Temka [501]

The given statement is true.

Explanation:

Many believe that the competition between development countries and internationally-traded goods soon eliminates large amount of jobs in developed countries as wages are lower in developing nations than in developed countries.  

Today, modern technology in developed nations leads to higher productivity, which represents a higher payroll.

Even with the newest technology, production and wages in developing nations will stay lower for decades than in the developed nations, because developing nations have better infrastructure and better trained workers. More technological developments are being transported ever quicker over borders.

3 0
4 years ago
Which of the following would not be classified as a material particiapant in an activity?
Nadusha1986 [10]

Answer:

C. MACRS depreciation expense.

Explanation:

Material participation in an income-producing activity. That is, an activity that is regular, continuous, and substantial leading to income-producing actions, in which the taxpayer materially participates is an active income or loss.

6 0
3 years ago
One end item A requires three component parts: B, C, and D. The bill of material indicates that for each completed A, 3 units of
pashok25 [27]

Answer:

Presently there will be 18 A’s, in accumulation there will be 43 B’s, this can create 43 ÷ 3 = 14.3 A’s.  

Moreover the 50 C’s might create 50 ÷ 2 = 25 A’s.  

Thus 35 D’s might create 35 A’s.  

Now B is a restriction.  

Consequently a determined of 14.3 A’s might be prepared with the existing stocks in hand.  

Therefore the entire A’s that might be distributed at the beginning of following week is 18 + 14.3 = 32 .3

8 0
3 years ago
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