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Diego's day is about to get worse. He has another conflict to resolve between Stibaliz and Everardo; both of them are marketing managers at
Diego's day is about to get worse. He has another conflict to resolve between Stibaliz and Everardo; both of them are marketing managers at CAX Communications. Stibaliz and Everardo are trying to outdo each other. since both are contenders for the post of Chief Marketing Officer. This time they are fighting on which marketing strategy the firm should choose. Stibaliz has devised a radio ads strategy that has an NPV of $1,000,000, an IRR of 12%, and a payback period of 3.1 years. Everado devised a digital campaigning strategy that has an NPV of $900,000, an IRR of 14%, and a payback period of 2.8 years. They have approached Diego to take the final decision. Diego is aware that the firm does not have enough cash to pursue both strategies, so he can only accept one. Which strategy should Diego chose? a. Radio ads strategy because its payback period is longer than digital communication's b. Radio ads strategy because its NPV is higher than digital communication's c. Digital communication's because its IRR is higher than radio ads' d. Digital communication's because its payback period is shorter than radio ads' e. Both have positive NPV, so he can chose either
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