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S6 Marketing Mix Analysis 43. In the Marketing Mix spreadsheet Table (S6, row 194), the advertising agency disputes the estimated cash flow effects of spending
S6 Marketing Mix Analysis 43. In the Marketing Mix spreadsheet Table (S6, row 194), the advertising agency disputes the estimated cash flow effects of spending an extra $100,000 on consumer ad spending. About half of the first year extra cash flow will come from new customers and if 40% of this new customer business becomes permanent as loyal new customers then the future cash flow in years 2-5 should reflect this effect. Under this assumption what is the new NPV for consumer advertising? a.) $11,851 b) $26,479 c) $69,624 d) $91,197 e) Other
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