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Please explain in full details will rate! A company is choosing between two different marketing strategies (aggressive and basic) to sell a product. Each marking
Please explain in full details will rate!
A company is choosing between two different marketing strategies (aggressive and basic) to sell a product. Each marking strategy will last two years and will produce revenue in years 1 and 2 only. The aggressive marketing strategy will cost $60,000 immediately (year 0), $45,000 in year 1, and $20,000 in year 2. There is uncertainty with projected revenues, but the forecasted revenues and probabilities for the aggressive marketing strategy are The basic marketing strategy will cost $10,000 immediately (year 0) and $8,000 each in years 1 and 2. There is uncertainty with projected revenues, but the forecasted revenues and probabilities for the basic marketing strategy are The company's MARR is 18%. You can ignore any other costs except for the marketing cost. a) Calculate the expected value and the standard deviation of the net present worth for each strategy. b) If the company is an expected-value decision maker, which strategy should it pursue? What information does the standard deviation provide that the company should also considerStep by Step Solution
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