If the ROMI of a firm is of the following linear form,

ROMI = 0.55 - 0.0000015 (Marketing Investment).

Calculate the optimal investment under a hurdle rate of 30%.

a. $65.567

b. $112,486

c. $95,000

d. $83,333

A firm's optimal investment level is $2 million, and its ROMI = 25%. If the hurdle rate is 15%, calculate the net return that the firm receives at the optimal investment level.

a. $1 million b. $0.3 million c. $ 4 million d. $0.5 million