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Nursing Home Marketing & Sales You run the marketing for a nursing home business. In one month, you contact 10,000 people with your marketing campaign.
Nursing Home Marketing & Sales You run the marketing for a nursing home business. In one month, you contact 10,000 people with your marketing campaign. For every 10,000 people you contact, 10 people sign a contract for the nursing home. Cost to contact 10,000 is $50,000. The average nursing home contract is $2,500 per month. The Monthly cost to service an account is $1,500. The retention rate is 97% per month. The company has a loan from the bank to finance its operations. The Interest rate for the company's loan is 12% annually. 1. How would you set this problem up in Excel? 2. What is the NPV for an average contract in Month 12 ONLY for the above situation? 3. In what month does the cumulative NPV Profit become positive
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