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

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

80.2K

Verified Solution

Question

Accounting

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 6,000 more units of this product; the cost of this research was $11,400.

The cost of the advertising campaign would be $57,600. The product's contribution margin is $11.00 per unit; additional annual fixed costs would be $19,000. 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: $51,505 B: $68,502 C: $91,107 D: $121,172 E: $161,159 F: $214,342

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

CalculatethepHofthesolutionformedbyadding25.10mL0.100MHNO3to15.00mL0.150 M KOH.

Chemistry
Q

If acceleration moves in a straight line what happens to heat transfer?

Mechanical Engineering
Q

Tarzan has foolishly gotten himself into another scrape with the animals and must be rescued once...

Physics
Q

Q23 Fountains usually seen in gardens are generated by a wide pipe with an enclosure...

Physics
Q

Name Dilations Worksheet State whether a dilation with the given scale factor is a reduction...

Geometry
Q

A population of bacteria increases by 30 every hour. Is this situation linear or exponential?A)...

Basic Math
Q

Find the mean median and mode of each data set 7 1 2 0 5...

Statistics
Q

Consider f(x) = 38x -112 / x-8Determine the intervals on which f is decreasing.f is...

Calculus
Q

SAY. Write your answer in the space provided or on a...

Accounting
Q

2. Explain what is meant by a static budget variance and a flexible budget variance.

Accounting
Q

answer for q1-q5 thans Q1 According (o ASA315.12 (ho auditor shall obtain an understanding...

Accounting
Q

You own a long call with a strike price of 89. You wrote a call...

Finance