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

Transcribed Image Text:

1 2 3 4 56789pmp34 15 10 11 12 13 14 16 17 A B Investment $ Year 1 Year 2 Year 3 Year 4 Year 5 C 2,692.90 Project A $ 10,000.00 =NPV(Rate,range of incoming) - Investment D Rate 0 8000 4000 $ 10,000.00 E 0.20 #DIV/0! F #DIV/0! #DIV/0! Investment Year 1 Year 2 Year 3 Year 4 Year 5 $ H 5,393.52 Project B $ 10,000.00 I Rate =NPV(Rate,range of incoming) - Investment $ 5,000.00 12000 5000 0 J 20% #DIV/0! K #DIV/O! #DIV/O! #DIV/O! #DIV/0! #DIV/O! 1 2 3 4 56789pmp34 15 10 11 12 13 14 16 17 A B Investment $ Year 1 Year 2 Year 3 Year 4 Year 5 C 2,692.90 Project A $ 10,000.00 =NPV(Rate,range of incoming) - Investment D Rate 0 8000 4000 $ 10,000.00 E 0.20 #DIV/0! F #DIV/0! #DIV/0! Investment Year 1 Year 2 Year 3 Year 4 Year 5 $ H 5,393.52 Project B $ 10,000.00 I Rate =NPV(Rate,range of incoming) - Investment $ 5,000.00 12000 5000 0 J 20% #DIV/0! K #DIV/O! #DIV/O! #DIV/O! #DIV/0! #DIV/O!