The director of sports marketing of your organization asks for your advice regarding sponsorship deals she is
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Question:
- The director of sports marketing of your organization asks for your advice regarding sponsorship deals she is contemplating. She has to choose between the following: (1) a 15-year sponsorship paying $100,000 per year; (2) a 15-year sponsorship initially paying $75,000 per year and increasing 5% each year; and (3) a 15-year sponsorship initially paying $45,000 per year, but increasing 12% each year. Based on this information, address the following:
- Determine the value of each year for each proposal, as well as the total value of each proposal. Hint: you should have a table that has 3 columns (one for each proposal) and is 16 rows high (one for each of the 15 years and one at the bottom that is a total of all 15 years).
- Which proposal should the marketing director choose and why?
Related Book For
Probability and Statistics for Engineers and Scientists
ISBN: 978-0495107576
3rd edition
Authors: Anthony Hayter
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