What is the discounted cash flow of campaign b

Assignment Help Financial Accounting
Reference no: EM132573095

A manager is deciding between two marketing campaigns:

  • Campaign A will generate net returns of $145,000 one year from now and $40,000 three years from now.
  • Campaign B will generate net returns of $25,000 two years from now and $145,000 four years from now.

The required rate of return is 6.00%.

Question a. What is the Discounted Cash Flow (DCF) of Campaign A?

Question b. What is the Discounted Cash Flow (DCF) of Campaign B?

Question c. Which campaign is economically better for the company? ( A OR B)

Reference no: EM132573095

Questions Cloud

Differences between prokaryotic cells and eukaryotic cells : 1. Describe four differences between prokaryotic cells and eukaryotic cells.
What will the total shares outstanding : The Argentina Fund has $560 million in assets and sells at a 6.9 percent discount to NAV. If you purchase 1,000 shares of this fund, what will the total shares
Explain which project would approve and why : With your company's limited resources explain which project you would approve and why? Project Alpha requires an initial investment of $35,000
How do the teams manage their team boundaries : How do the teams manage their team boundaries? What are the trade-offs between internal cohesion and external ties within each type of team?
What is the discounted cash flow of campaign b : What is the Discounted Cash Flow (DCF) of Campaign B? What is the Discounted Cash Flow (DCF) of Campaign A? The required rate of return is 6.00%.
Common procedure in biotechnology research laboratories : The extraction of DNA is a common procedure in biotechnology research laboratories. Research the methods of extracting DNA
How much depreciation expense should the company claim : Manna used the double declining balance method of depreciation. How much depreciation expense should the company claim for year 2017
Govern movement and somatosensation : How similar/different and independent/interrelated are the the systems that govern movement and somatosensation
Network security impact data security. : How does Network Security impact Data Security? Consider the ethical implications of intrusion detection?

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd