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Sierra Club is considering a marketing campaign seeking donations. The campaign costs $10,000 in year zero and expected to increase donations by the following amounts
Sierra Club is considering a marketing campaign seeking donations. The campaign costs $10,000 in year zero and expected to increase donations by the following amounts over next three years. year 1: $7000; Year 2: $3000 Year 3: $1000 What is the net present value (rounded to integer value) of the cashflow if Sierra Club uses a discount rate of 5% in its decisions, and should Sierra Club invest in the marketing campaign? (assume no taxes because Sierra Club is a nonprofit organization) What is the net present value (rounded to integer value) of the cashflow if Sierra Club uses a discount rate of 5% in its decisions, and should Sierra Club invest in the marketing campaign? (assume no taxes because Sierra Club is a nonprofit organization) 0$-252, Should not invest in the campaign $252, Should invest in marketing campaign $11000, should invest in the campaign $1000, should invest $1815, should invest in the campaign
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