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The director of marketing of your organization asks for your advice regarding sponsorship deals she is contemplating. She has to choose between the following: a
The director of marketing of your organization asks for your advice regarding sponsorship deals she is contemplating. She has to choose between the following: a year sponsorship paying $ per year; a year sponsorship initially paying $ per year and increasing each year, and a year sponsorship initially paying $ per year but increasing each year.
Determine the present value of each year for each proposal, as well as the total present value of each proposal.
Which proposal should the marketing director choose?
What questions about her firm and about the potential sponsors should she contemplate?
How do these questions affect the decision? Fully explain your answer.
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