Question: I don't know how to post individually the questions because basically its a one problem with sub questions. 1:23 pm To 54%, VIRGIN 3G Microsoft


1:23 pm To 54%, VIRGIN 3G Microsoft Corporation A company is planning an advertising campaign to promote the sale of a new product but is undecided as to the geographic coverage of the campaign. The key parameters of the three advertising campaigns are provided below. Project Parameters Local Regional Provincial 1. Initial Cost 300,000 500,000 90.000 600,000 at EOY1 400,000 at EOY1 850,000 at EOY1 increasing increasing increasing annually by annually by 4% 10,000 annually by 2% 2. Revenues (S) thereafter. 309,000 at EOY1 465,000 at EOY1 710,000 at EOY1 3. Operating Costs increasing increasing annually by 3% annually by increasing annually by thereafter. 000 thereafter. 50,000 thereafter. 4. End-of-life salvage -80,000 value (S). 5 5 10 5. Useful life (years) Industry Standard 4 years MARR 10% 1. ALocal campaign's Net Present Worth (NPW)(rounded to the nearest $100) is a) $34.900; b)$35.200; c)$35,500;d) $36,900 2. A Regional campaign's NPW (rounded to the nearest$100 is a) $38,600; b) $38,900; c) $39,700; d)$39,900. 3. If the Regional campaign was repeated for a second five year period (ie. years 6 to 10: same parameter values as in the first cycle). its NFW (rounded to the nearest $100) after 10 years would be a) $153,400; b) $163,800; c) $167,600; d) $169,900. 4. After 20 years (it was repeated several times), a Provincial campaign's Annual Equivalent Worth (AEW) (rounded to the nearest S100) is a) $12,700; b) $13,900; c) $14.000; d) $14,300. 5. The Regional campaign's AEW (rounded to the nearest $100) is a) $9.800; b) $10,300; c) $10,500; d) $11,100. 6. The best campaign based on the NPW method is ECO 1192C (Winter 2017- White Assignment Page 2
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
