ABC company is considering undertaking a marketing campaign witch will involve an annual advertisement expenditure of 20m
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Question:
ABC company is considering undertaking a marketing campaign witch will involve an annual advertisement expenditure of 20m at the end of 5 years. ABC expects that this marketing will create brand regonition. it is anticipated that this intangible asset, will raise net profit by 30m/ year starting in year 6 and this incremental amount of net profit of 30m will continue into the indefinite future. required discount rate is 10%.
Calculate the current implied value of brand recognition asset to ABC.
Related Book For
Fundamentals Of Corporate Finance
ISBN: 9780135811603
5th Edition
Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford
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