Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. 96. x company is considering conducting an immedia

96. X Company is considering conducting an immediate advertising campaign in order to increase sales...

70.2K

Verified Solution

Question

Accounting

96.

X Company is considering conducting an immediate advertising campaign in order to increase sales of one of its more popular products. The marketing department did market research last year that suggested the company could sell 5,500 more units of this product; the cost of this research was $15,900.

The cost of the advertising campaign would be $43,500. The product's contribution margin is $15.00 per unit; additional annual fixed costs would be $18,000. The increased sales are expected to last for 7 years.

Assuming a discount rate of 5%, what is the net present value of this investment?

A: $228,497 B: $258,201 C: $291,767 D: $329,697 E: $372,558

F: $420,990

IDK if you need this table but here it is just in case:

image

TTable 1: Present Value of $1.00 Table 2: Present Value of an Annuity of $1.00

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

“Are Women Really More Talkative Than Men?” is the title of a 2007 article that appeared...

Basic Math
Q

C 12 22 D 9 Q 28 A four times magnified image was formed by...

Physics
Q

K a Determine th b If a side of th Nonagon

Geometry
Q

4 17 mi 16 m 17 m 5 D X 25 4 m 9 6...

Geometry
Q

nswer Which of the following radical expressions has an absolute value symbol in its simplified...

Algebra
Q

AirQual Test Corporation provides on-site air quality testing services. The company has provided...

Accounting
Q

PROBLEM 2-5 COST OF GOODS MANUFACTURED AND SOLD STATEMENTS AND NET...

Accounting
Q

Consider a fictional price index, the College Student Price Index (CSPI), based on a typical...

Accounting
Q

The balance sheet items of Kiner Company as of December 31, current year, follow in...

Accounting
Q

Plymouth Company holds a 90% interest in Savannah, Inc., which was acquired in a previous...

Accounting
Q

Explain Prima Facie and Res Gestae statements. Explain the three components in the Law on...

Accounting
Q

When you evaluated a firm, you saw that there is 6 times more equity than...

Finance