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ABC, a seller of TVs , is considering launching an advertising campaign for its latest advanced product, Toptv. ABC plans to spend $ 3 million
ABC, a seller of TVs is considering launching an advertising campaign for its latest advanced
product, Toptv. ABC plans to spend $ million on advertisements for the campaign this year year
and no advertising expenditures next year year and the following year year The ads are
expected to boost sales of the new product by $ million next year year and $ million the
following year Year In addition, the company expects the new consumers who try the new
product will be willing to try ABC's other products. As a result, sales of other products are expected
to rise by $ million next year year and the following year year The cost of goods sold this
year year is million, million next year year and million in the following year year
The company's other projects are very profitable, and the company's marginal corporate tax rate
is What is the Unlevered net income associated with the advertising campaign in year and
year What are the free cash flows in year and year Assume there are no CCA, NWC or
CapEx requirementsamounts
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