You are given the following two products to evaluate and are asked to choose the best firm
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Question:
You are given the following two products to evaluate and are asked to choose the best firm marketing investment. Show your work and why you selected product 1 or product 2.
1- Provide a thorough typed up response with detailed and accurate explanation.
2- Complete the excel sheet with the info provided
*cell F6: =D6/E6
*cell F11: =SUM(F6:F9)
*cell F12: =F11-C5
*cell K6: =I6/J6
*cell K7: =I7/J7
*cell K8: =I8/J8
*cell K9: =I9/J9
*cell K11: =SUM(K6:K9)
*cell J12: =K11-H5
Product 1:
Product 1 | Product 2 | |
Investment cost | $15,000 | $15,000 |
Discount Rate | 20% | 20% |
Year 1 Return | $0 | $ 5,000 |
Year 2 Return | $ 8,000 | $12,000 |
Year 3 Return | $ 4,000 | $ 5,000 |
Year 4 Return | $ 10,000 | $2,000 |
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