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Bangers Inc is a star-up manufactor of australian-style frozen veggie pies located in San Antonio Texas. The company is five years old and recently installed the manufacturing capacity to quadruple its unit sales. To jump start the demand for its products. the company founders have hired a local advertising firm to create a series of ads for its new line of meat pies. The ads will cost the firm $500,000 to run for one year. Bangers' management hopes that the advertising will produce annual sales of $1.8 millin for its meat pies. Moreover the firm's managmetn experts that sales of its veggie pies will increase by $300,000 next yar as a result of the company name reconginition derived form the meat pie add campaing. If Banger's operating profits per dolllar of new sales revenue are 40 percent and the firm faces a 33 percent tax bracket, what is the incremental operationg profit the firm can expect to eran from teh ad campaign? Does the decision to place the ad look good from the prespective of th anticipated profits? The incremental operationg profit the firm can expect to earn from the add campaitn for year 1 is $? Teh incremental operating profit the firm can expect to earn from the add compaign for year 2 is $? The decision to place the add appears to be an unacceptable or acceptable project since the year 1 and year 2 cash flows are significatly less or greater than the $500,000 intial outlay for taking the project.

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