Answer: E. objective and task
Explanation: This is simply the objective and task method of budgeting which uses a build-up approach and defines clearly the communication objectives to be accomplished (isolating advertising objectives) and the estimation of the associated costs of the performance of the required strategies and activities to achieve the communication objectives. This method of budgeting, however, is most difficult to use when the product to be promoted is new to the market.
Answer:
The equipment shall be financially attractive when we have annual cash inflow in excess of 132,686
Explanation:
Calculate the PVIFA ( Present value of interest factor annuity ) at r = 12 % and n = 4 years
= [ 1 - (1.12)-4 ] / 0.12 = 3.03734935
Minimum annual cash flow needed = Investment / PVIFA = 403,014 / 3.03734935
= 132686
The equipment shall be financially attractive when we have annual cash inflow in excess of 132,686
Answer:
ASSURANCE should go in the blank.
Answer:
$726,500
Explanation:
The computation of current earnings and profits for year 2 is shown below:-
current earnings and profits for year 2 = Profit as per Income Tax - Penalty disallowed + Life insurance proceed - Tax Expenses
= $760,000 - $42,000 + $185,000 - $176,500
= $945,000 - $42,000 - $176,500
= $726,500
Therefore we have applied the above formula to reach out the current earnings and profits for year 2.