Answer on Economics of Enterprise Question for marvi
The ABC computer corporation is considering an increase in its advertising expenditures form $10 million to $15 million for a five year period (i.e in years 1 to 5). the marketing department estimates that the increased advertising will increase profits by $4 million in years 3 to 7 and by $3 million. in years 8 to 10, after which profits will return to the level they were at prior to the new program , if the firm uses a discount rate of 12 percent, will the proposed advertising program increase shareholder value?
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Just have a question. Do you also provide help in understanding a concept? Not an assignment but for my learning. If certain concepts in the book are not clear, can you provide a simplified explanation of it using math that's understandable? You can charge the equivalent of an assignment.
Some things in the chapter attachments I sent you are not clear. They do not have much solved examples either.
Thanks a lot,