Question
You are given the following two products to evaluate and are asked to choose the best firm marketing investment. Show your work and why you
You are given the following two products to evaluate and are asked to choose the best firm marketing investment. Show your work and why you selected product 1 or product 2.
1- Provide a thorough typed up response with detailed and accurate explanation.
2- Complete the excel sheet with the info provided
*cell F6: =D6/E6
*cell F11: =SUM(F6:F9)
*cell F12: =F11-C5
*cell K6: =I6/J6
*cell K7: =I7/J7
*cell K8: =I8/J8
*cell K9: =I9/J9
*cell K11: =SUM(K6:K9)
*cell J12: =K11-H5
Product 1:
| Product 1 | Product 2 | |
| Investment cost | $15,000 | $15,000 |
| Discount Rate | 20% | 20% |
| Year 1 Return | $0 | $ 5,000 |
| Year 2 Return | $ 8,000 | $12,000 |
| Year 3 Return | $ 4,000 | $ 5,000 |
| Year 4 Return | $ 10,000 | $2,000 |
Investment Year 1 Year 2 Year 3 Year 4 Year 5 $ Project A 2,692.90 $ 10,000.00 =NPV(Rate,range of incoming) - Investment Rate 0 8000 4000 $ 10,000.00 0.20 #DIV/0! #DIV/0! #DIV/0! Investment Year 1 Year 2 Year 3 Year 4 Year 5 $ Project B 5,393.52 $ 10,000.00 $ =NPV(Rate,range of incoming) - Investment Rate 5,000.00 12000 5000 0 20% #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
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Contemporary Engineering Economics
Authors: Chan S. Park
5th edition
136118488, 978-8120342095, 8120342097, 978-0136118480
