There is a $2,000 yearly cost to get widespread advertising visibility of the accessibility features of Toyota's cars. This visibility is likely to increase sales by at least 1,000 cars per year. What type of model is needed?

Question 1 options:

	A full three statement detailed financial model that produces the stock price impact, ratios, and many other financial measures of performance.
	Single spreadsheet pro forma model with IRR, Payback period, and NPV shown
	Back of envelope

Question 2 (2.5 points)

Amazon decides to investigate the financial value of adding new technology that will eliminate problems with perishable foods at its stores. What type of model is needed?

Question 2 options:

	Single spreadsheet pro forma model with IRR, Payback period, and NPV shown
	Back of envelope
	A full three statement detailed financial model that produces the stock price impact, ratios, and many other financial measures of performance.

Question 3 (2.5 points)

Caterpillar Financial has extended a $400 million loan to Newmont Mining corporation. They need to anticipate whether the loan covenants will be violated well before violations occur. The covenants focus on the PE ratio, ROE, cash to sales; and inventory turnover. What type of model is needed?

Question 3 options:

	Back of envelope
	A full three statement detailed financial model that produces the stock price impact, ratios, and many other financial measures of performance.
	Single spreadsheet pro forma model with IRR, Payback period, and NPV shown