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School
Michigan State University
Department
Marketing
Course
MKT 300
Professor
Mr Chang
Semester
Fall

Description
 Question 1 10 out of 10 points What is the Rate of Return for the following investment and incremental cash flows? Investment Forecast Incremental Cash Flow/Profit Year 0 1 2 3 4 5 Marketing Mix: Consumer Advertising (\$100,000) \$100,000 \$20,000 \$10,000 \$0 \$0 Answer Selected Answer: 23%  Question 2 10 out of 10 points Calculate the NPV for the following cash flows: RRR = 12.00% Year 0 1 2 3 4 5 (\$150,000) \$25,000 \$25,000 \$5,000 \$25,000 \$150,000 Answer Selected Answer: \$-3,188  Question 3 0 out of 10 points Use S6 Project Re-appraisal to complete this question. A marketing campaign that cost \$75,000 to launch had forecast incremental cash flows of \$50,000 in its first year, \$25,000 in its second year and \$25,000 in its third year. With a shareholder RRR of 10% how much shareholder value was it expected to create over the three years? What actually happened is that it earned \$25,000 in the first year. The campaign manager says that the incremental projected cash flows for year two and three are now \$15,000 and \$5,000 and the program requires an additional investment of \$25,000. How much capital will be destroyed by this campaign? Answer Selected Answer: \$9,899 and -\$52,273  Question 4 10 out of 10 points You purchased a Annuity for \$150,000.During years 1-5 you received payments ofWhat would be your rate of return? Answer Selected Answer: 5.4%  Question 5 10 out of 10 points Calculate the NPV for the following cash flows: RRR = 15.00% Year 0 1 2 3 4 5 (\$100,000) \$15,000 \$15,000 \$15,000 \$25,000 \$115,000 Answer Selected Answer: \$5,718  Question 6
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