finance questions 1,2,3, need correct an original answers. will rate helpful Going Places Motor Company very recently

finance questions 1,2,3, need correct an original answers. will rate helpful

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Going Places Motor Company very recently undertook an aggressive marketing campaign to improve its market share. The company plans to spend $28,000.00 next year, $37,700.00 in year two and $61,000.00 in year three of the campaign. This is expected to increase earnings (not including the cost of the campaign) by $2,100.00 in year one, $8,000.00 in year two and $25,000.00 in year three. The expected increase in earnings for every subsequent year is a constant $34,000.00. The price of Going Places' stock increased by 34.466% after the campaign announcement. Expected annual EPS if the company does not undertake the campaign is $45.00 forever. What is the implied NPVGO of the marketing campaign under the assumption of a 12% required rate of return? The NPVGO is $173.79. The NPVGO is $144.75. The NPVGO is $129.25. The NPVGO is $152.37. Going Places Motor Company very recently undertook an aggressive marketing campaign to improve its market share. The company plans to spend $28,000.00 next year, $37,700.00 in year two and $61,000.00 in year three of the campaign. This is expected to increase earnings (not including the cost of the campaign) by $2,100.00 in year one, $8,000.00 in year two and $25,000.00 in year three. The expected increase in earnings for every subsequent year is a constant $34,000.00. The price of Going Places' stock increased by 34.466% after the campaign announcement. Expected annual EPS if the company does not undertake the campaign is $45.00 forever. What is the implied NPVGO of the marketing campaign under the assumption of a 12% required rate of return? The NPVGO is $173.79. The NPVGO is $144.75. The NPVGO is $129.25. The NPVGO is $152.37.

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Question 1 The correct answer is B 14475 EXPLANATION To calculate the ... View the full answer