Question
A new marketing campaign will cost $1 million to produce in year 0. After the campaign is released, it is expected to generate $800,000 in
A new marketing campaign will cost $1 million to produce in year 0. After the campaign is released, it is expected to generate $800,000 in profits in year 1, which will decrease by 50% each year until year 4. Profits from the campaign are shared with a partnering company, who will receive $50,000 each year for 4 years. If the MARR is 15%, what is the NPV of this campaign?
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Global Marketing
Authors: Svend Hollensen
8th Edition
1292251808, 9781292251806
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