solve these questions with proper calculations and recommendations.

1. Amazon is reviewing whether it should buy exclusive rights to advertise on the front page of a social network search engine, Zignet. At the launch of the agreement, Amazon is expected to make an upfront payment of $15 million to Zignet. In addition, Amazon would spend an average of $15,000 per day on Zignet advertising for a full year. In return, Amazon's brand would be featured exclusively and prominently on many of Zignet's pages for one year. More specifically, Amazon expects to be present on 60% of Zignet's 50 million page views per day. Based on industry estimates, Amazon believes that 0.25% of every page view at Zignet would result in a visit to its own website for the entire year of this deal. Amazon's own experience suggests that about 1.0% of the visitors to its site actually buy books and other merchandise. While the typical retention rate for Amazon customers is over 90%, management is concerned that customers coming from the Zignet site will have a retention rate of only 70%. The dollar amount of a typical order is $100. Amazon's CFO was concerned that, with a 30% gross margin per order and 10% cost of capital, this deal may not be worthwhile. What is your recommendation? Assume customers acquired at the end of the year are worth the same as those acquired at the beginning of the year. Assume a discount rate of 10%. 2. AJ Financial (AJF) Group is reviewing its past performance and formulating its strategy for the future. The company sells financial products (life insurance, mutual funds, and certificates) as well as financial plans and advice to its customers. Last year, AJF had total revenue of $3.2 billion and variable cost of $2.5 billion. It had a customer base of 1.46 million. AJF also offers customized financial plans for its customers based on each customer's demographics and lifestyle. Currently, 14% of its customers have customized financial plans, while 25% of new customers typically sign up for financial plans. Customers with plans buy 4.2 products; customers without financial plans purchase 1.9 products. AJF was quite happy with its current customer retention rate of 91%. However, management is concerned that it had only 10% of its customers' share of wallet (ie, of the total money customers spent on financial services and products, they spent only 10% with AJF). Management is considering the following three options: a. Increase the customer retention rate from 91% to 93%. b. Increase the customers' share of wallet from 10% to 12%. c. Change the customer mix of plan and non-plan customers from its current 14%/86% to 25%/75%. To make these decisions, however, management wants your help to determine the maximum amount of money it should spend on each of these three options. Assume every product provides the same profit and assume a discount rate of 10%