Attached is the 10% Cash Flow Chart and the Formulas

QUESTION 5 If this is the graph of revenue brought in by the industry, what is the (simple) return on investment (year O) for the advertising campaign compared to revenue for all years shown at 10%? (note there is an increase of 15% per year after year 5] [units are already in % so just enter integer number, e.g. 10% you would enter '10'] Revenue for Industry (in $M] 1800 1,627.41 1600 1,415.14 1400 1,230.56 1200 1,070.05 1000 930.48 809.11 800 600 703.58 611.80 532.00 462.61 402.27 349.80 400 180 200 230.00264.50304.18 200 160 140 100 120 0 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 3awLLLLLLLLLLLLL 10% TABLE 15 Discrete Cash Flow: Compound Interest Factors 10% Single Payments F/P P/F Compound Present Amount Worth A/F Sinking Fund P/A Present Worth Arithmetic Gradients P/G A/G Gradient Gradient Present Worth Uniform Series n 1.1000 1.00000 1 2 3 1.2100 4 5 6 7 0.9091 0.8264 0.7513 0.6830 0.6205 0.5645 0.5132 0.4665 0.4241 0.3855 0.3505 0.3186 0.2897 0.2633 1.3310 1.4641 1.6105 1.7716 1.9487 2.1436 2.3579 2.5937 2.8531 3.1384 3.4523 3.7975 4.1772 4.5950 5.0545 5.5599 6.1159 6.7275 7.4002 8.1403 0.47619 0.30211 0.21547 0.16380 0.12961 0.10541 0.08744 0.07364 0.06275 0.05396 0.04676 0.04078 0.03575 0.03147 0.2394 0.2176 10 12 13 23 24 25 26 27 28 29 30 31 32 33 0.02782 8.9543 0.1978 0.1799 0.1635 0.1486 0.1351 0.1228 0.1117 0.1015 0.0923 0.0839 0.0763 0.0693 0.0630 0.0573 0.052 0.0474 0.0431 0.0391 0.0356 0.0221 0.0137 0.0085 0.0053 0.003 0.0020 0.0013 0.0008 0.0005 0.0003 0.0002 0.0001 0.0001 0.0001 0.0001 9.8497 10.8347 11.9182 13.1100 14.4210 15.8631 17.4494 19.1943 21.1138 23.2252 25.5477 28.1024 45.2593 72.8905 117.3909 189.0591 304.4816 490.3707 789.7470 1271.90 2048.40 3298.97 5313.02 8556.68 9412.34 11389 13781 Uniform Series Payments F/A AP Compound Capital Amount Recovery 1.0000 1.10000 2.1000 0.57619 3.3100 0.40211 4.6410 0.31547 6.1051 0.26380 7.7156 0.22961 9.4872 0.20541 11.4359 0.18744 13.5795 0.17364 15.9374 0.16275 18.5312 0.15396 21.3843 0.14676 24.5227 0.14078 27.9750 0.13575 31.7725 0.13147 35.9497 0.12782 40.5447 0.12466 45.5992 0.12193 51.1591 0.11955 57.2750 0.11746 64.0025 0.11562 71.4027 0.11401 79.5430 0.11257 88.4973 0.11130 98.3471 0.11017 109.1818 0.10916 121.0999 0.10826 134.2099 0.10745 148.6309 0.10673 164.4940 0.10608 181.9434 0.10550 201.1378 0.10497 222.2515 0.10450 245.4767 0.10407 271.0244 0.10369 442.5926 0.10226 718.9048 0.10139 1163.91 0.10086 1880.59 0.10053 3034.82 0.10033 4893.71 0.10020 7887.47 0.10013 12709 0.10008 20474 0.10005 32980 0.10003 53120 0.10002 85557 0.10001 94113 0.10001 0.10001 0.10001 0.02466 0.02193 0.01955 0.01746 0.01562 0.01401 0.01257 0.01130 0.01017 0.00916 0.00826 0.00745 0.00673 0.00608 0.00550 0.00497 0.00450 0.00407 0.00369 0.00226 0.00139 0.00086 0.00053 0.00033 0.00020 0.00013 0.00008 0.00005 0.00003 0.00002 0.00001 0.00001 0.00001 0.00001 0.9091 1.7355 2.4869 3.1699 3.7908 4.3553 4.8684 5.3349 5.7590 6.1446 6.4951 6.8137 7.1034 7.3667 7.6061 7.8237 8.0216 8.2014 8.3649 8.5136 8.6487 8.7715 8.8832 8.9847 9.0770 9.1609 9.2372 9.3066 9.3696 9.4269 9.4790 9.5264 9.5694 9.6086 9.6442 9.7791 9.8628 9.9148 9.9471 9.9672 9.9796 9.9873 9.9921 9.9951 9.9970 9.9981 9.9988 9.9989 9.9991 9.9993 0.8264 2.3291 4.3781 6.8618 9.6842 12.7631 16.0287 19.4215 22.8913 26.3963 29.9012 33.3772 36.8005 40.1520 43.4164 46.5819 49.6395 52.5827 55.4069 58.1095 60.6893 63.1462 65.4813 67.6964 69.7940 71.7773 73.6495 75.4146 77.0766 78.6395 80.1078 81.4856 82.7773 83.9872 88.9525 92.4544 94.8889 96.5619 97.7010 98.4705 98.9870 99.3317 99.5606 99.7120 99.8118 99.8773 99.8874 99.9052 99.9202 0.4762 0.9366 1.3812 1.8101 2.2236 2.6216 3.0045 3.3724 3.7255 4.0641 4.3884 4.6988 4.9955 5.2789 5.5493 5.8071 6.0526 6.2861 6.5081 6.7189 6.9189 7.1085 7.2881 7.4580 7.6186 7.7704 7.9137 8.0489 8.1762 8.2962 8.4091 8.5152 8.6149 8.7086 9.0962 9.3740 9.5704 9.7075 9.8023 9.8672 9.9113 9.9410 9.9609 9.9742 9.9831 9.9889 9.9898 9.9914 9.9927 90 Relations for Discrete Cash Flows with End-of-Period Compounding Factor Notation and Formula Type Find/Given Sample Cash Flow Diagram Relation (F/P,1,n) = (1 + i)" F = P(F/P.i,n) F/P Compound amount 0 n Single Amount P/F Present worth (P/F,i,n) = 1 (1 + i)" P = F(P/F,i,n) P/A (1 + i)" - 1 (P/A,1,n) = i(1 + i)" A A. P = A(P/A,1,n) A A Present worth 0 1 2 n-ln (A/Pi.n) = AP Capital recovery i(1 + i)" (1 + i)" - 1 A = P(A/P.i,n) P Uniform Series F/A Compound amount (1 + i)" - 1 (F/A,1,n) = i F = A(F/A,1,n) 0 1 2n-1 n (A/F.i.n) = AF Sinking fund i (1 + i)" - 1 A = F(A/F,1,n) A A A A (P/G,1,n) = (1 + i)" - in - 1 if(1 + i)" PG = G(P/G,1,n) PG/G Present worth Po AG AG AG-AG AG Arithmetic Gradient 0 1 2 1 n (A/G,1,n) = AG = G(A/G,1,n) G Ag/G Uniform series (1 + i)" - 1 2G- (n-1) G (Gradient only) A(1+3)" - 1 Pg/A, and g Present worth 11-6+1)] Geometric Gradient 87 10 n 1 2 n-In +i . + (Gradient and base) - QUESTION 5 If this is the graph of revenue brought in by the industry, what is the (simple) return on investment (year O) for the advertising campaign compared to revenue for all years shown at 10%? (note there is an increase of 15% per year after year 5] [units are already in % so just enter integer number, e.g. 10% you would enter '10'] Revenue for Industry (in $M] 1800 1,627.41 1600 1,415.14 1400 1,230.56 1200 1,070.05 1000 930.48 809.11 800 600 703.58 611.80 532.00 462.61 402.27 349.80 400 180 200 230.00264.50304.18 200 160 140 100 120 0 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 3awLLLLLLLLLLLLL 10% TABLE 15 Discrete Cash Flow: Compound Interest Factors 10% Single Payments F/P P/F Compound Present Amount Worth A/F Sinking Fund P/A Present Worth Arithmetic Gradients P/G A/G Gradient Gradient Present Worth Uniform Series n 1.1000 1.00000 1 2 3 1.2100 4 5 6 7 0.9091 0.8264 0.7513 0.6830 0.6205 0.5645 0.5132 0.4665 0.4241 0.3855 0.3505 0.3186 0.2897 0.2633 1.3310 1.4641 1.6105 1.7716 1.9487 2.1436 2.3579 2.5937 2.8531 3.1384 3.4523 3.7975 4.1772 4.5950 5.0545 5.5599 6.1159 6.7275 7.4002 8.1403 0.47619 0.30211 0.21547 0.16380 0.12961 0.10541 0.08744 0.07364 0.06275 0.05396 0.04676 0.04078 0.03575 0.03147 0.2394 0.2176 10 12 13 23 24 25 26 27 28 29 30 31 32 33 0.02782 8.9543 0.1978 0.1799 0.1635 0.1486 0.1351 0.1228 0.1117 0.1015 0.0923 0.0839 0.0763 0.0693 0.0630 0.0573 0.052 0.0474 0.0431 0.0391 0.0356 0.0221 0.0137 0.0085 0.0053 0.003 0.0020 0.0013 0.0008 0.0005 0.0003 0.0002 0.0001 0.0001 0.0001 0.0001 9.8497 10.8347 11.9182 13.1100 14.4210 15.8631 17.4494 19.1943 21.1138 23.2252 25.5477 28.1024 45.2593 72.8905 117.3909 189.0591 304.4816 490.3707 789.7470 1271.90 2048.40 3298.97 5313.02 8556.68 9412.34 11389 13781 Uniform Series Payments F/A AP Compound Capital Amount Recovery 1.0000 1.10000 2.1000 0.57619 3.3100 0.40211 4.6410 0.31547 6.1051 0.26380 7.7156 0.22961 9.4872 0.20541 11.4359 0.18744 13.5795 0.17364 15.9374 0.16275 18.5312 0.15396 21.3843 0.14676 24.5227 0.14078 27.9750 0.13575 31.7725 0.13147 35.9497 0.12782 40.5447 0.12466 45.5992 0.12193 51.1591 0.11955 57.2750 0.11746 64.0025 0.11562 71.4027 0.11401 79.5430 0.11257 88.4973 0.11130 98.3471 0.11017 109.1818 0.10916 121.0999 0.10826 134.2099 0.10745 148.6309 0.10673 164.4940 0.10608 181.9434 0.10550 201.1378 0.10497 222.2515 0.10450 245.4767 0.10407 271.0244 0.10369 442.5926 0.10226 718.9048 0.10139 1163.91 0.10086 1880.59 0.10053 3034.82 0.10033 4893.71 0.10020 7887.47 0.10013 12709 0.10008 20474 0.10005 32980 0.10003 53120 0.10002 85557 0.10001 94113 0.10001 0.10001 0.10001 0.02466 0.02193 0.01955 0.01746 0.01562 0.01401 0.01257 0.01130 0.01017 0.00916 0.00826 0.00745 0.00673 0.00608 0.00550 0.00497 0.00450 0.00407 0.00369 0.00226 0.00139 0.00086 0.00053 0.00033 0.00020 0.00013 0.00008 0.00005 0.00003 0.00002 0.00001 0.00001 0.00001 0.00001 0.9091 1.7355 2.4869 3.1699 3.7908 4.3553 4.8684 5.3349 5.7590 6.1446 6.4951 6.8137 7.1034 7.3667 7.6061 7.8237 8.0216 8.2014 8.3649 8.5136 8.6487 8.7715 8.8832 8.9847 9.0770 9.1609 9.2372 9.3066 9.3696 9.4269 9.4790 9.5264 9.5694 9.6086 9.6442 9.7791 9.8628 9.9148 9.9471 9.9672 9.9796 9.9873 9.9921 9.9951 9.9970 9.9981 9.9988 9.9989 9.9991 9.9993 0.8264 2.3291 4.3781 6.8618 9.6842 12.7631 16.0287 19.4215 22.8913 26.3963 29.9012 33.3772 36.8005 40.1520 43.4164 46.5819 49.6395 52.5827 55.4069 58.1095 60.6893 63.1462 65.4813 67.6964 69.7940 71.7773 73.6495 75.4146 77.0766 78.6395 80.1078 81.4856 82.7773 83.9872 88.9525 92.4544 94.8889 96.5619 97.7010 98.4705 98.9870 99.3317 99.5606 99.7120 99.8118 99.8773 99.8874 99.9052 99.9202 0.4762 0.9366 1.3812 1.8101 2.2236 2.6216 3.0045 3.3724 3.7255 4.0641 4.3884 4.6988 4.9955 5.2789 5.5493 5.8071 6.0526 6.2861 6.5081 6.7189 6.9189 7.1085 7.2881 7.4580 7.6186 7.7704 7.9137 8.0489 8.1762 8.2962 8.4091 8.5152 8.6149 8.7086 9.0962 9.3740 9.5704 9.7075 9.8023 9.8672 9.9113 9.9410 9.9609 9.9742 9.9831 9.9889 9.9898 9.9914 9.9927 90 Relations for Discrete Cash Flows with End-of-Period Compounding Factor Notation and Formula Type Find/Given Sample Cash Flow Diagram Relation (F/P,1,n) = (1 + i)" F = P(F/P.i,n) F/P Compound amount 0 n Single Amount P/F Present worth (P/F,i,n) = 1 (1 + i)" P = F(P/F,i,n) P/A (1 + i)" - 1 (P/A,1,n) = i(1 + i)" A A. P = A(P/A,1,n) A A Present worth 0 1 2 n-ln (A/Pi.n) = AP Capital recovery i(1 + i)" (1 + i)" - 1 A = P(A/P.i,n) P Uniform Series F/A Compound amount (1 + i)" - 1 (F/A,1,n) = i F = A(F/A,1,n) 0 1 2n-1 n (A/F.i.n) = AF Sinking fund i (1 + i)" - 1 A = F(A/F,1,n) A A A A (P/G,1,n) = (1 + i)" - in - 1 if(1 + i)" PG = G(P/G,1,n) PG/G Present worth Po AG AG AG-AG AG Arithmetic Gradient 0 1 2 1 n (A/G,1,n) = AG = G(A/G,1,n) G Ag/G Uniform series (1 + i)" - 1 2G- (n-1) G (Gradient only) A(1+3)" - 1 Pg/A, and g Present worth 11-6+1)] Geometric Gradient 87 10 n 1 2 n-In +i . + (Gradient and base)