Project C: Marketing/Advertising Campaign A major new marketing/advertising campaign, which will cost $2 million per year and
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Project C: Marketing/Advertising Campaign
- 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%.
In evaluating this, my payback period was calculated as -0.03. is it possible to get a negative payback period? or is there an error in my calculations?
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