Question: Create excel budget tool including net present value (NPV), internal rate of return (IRR), payback period, and profitability index (PI). A major new marketing/advertising campaign,
Create excel budget tool including net present value (NPV), internal rate of return (IRR), payback period, and profitability index (PI).
- A major new marketing/advertising campaign, which will cost $2 million per year and last 6 years.
- It is forecast that the campaign will increase sales/revenues and costs of sales by 15% per year.
- Annual sales for the previous year were $20 million.
- The marginal corporate tax rate is presumed to be 25%.
- Being a moderate risk investment, the required rate of return of the project is 10%.
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
