Question
You are presenting a sponsorship proposal to the XYZ Company. You have prepared 3 scenarios. The first is is a 5-year proposal where you are
You are presenting a sponsorship proposal to the XYZ Company. You have prepared 3 scenarios. The first is is a 5-year proposal where you are asking the XYZ Company to invest $100,000 each year. Option 2 is a custom proposal requiring an initial investment of $75,000 with an 18% increase in years 2 and 3. However, years 4 and 5 are only increased by 10% over the previous year. Option 3 requires a $50,000 initial investment but increases 25% annually.
Consider the rate of inflation is @ 5%, which option produces the most revenue over the 5 years?
A. Option 1
B. Option 2
C. Option 3
D. They are the same
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