Abbott wants to increase their marketing for Pedialyte leading up to St. Patrick's Day this year. They launch a Superbowl ad on 2/13/2022, costing them $5,000,000, and they launch a secondary campaign in early March (3/6) costing $800,000. They expect to see sales starting at $500,000 on 2/20, increasing by 20% every week for 6 weeks. Assuming a MARR of 12%, what is the present value of this project at the start of the campaign if they stop attributing sales to this on 4/3/2022?

Abbott wants to increase their marketing for Pedialyte leading up to St. Patrick's Day this year. They launch a Superbowl ad on 2/13/2022, costing them $5,000,000, and they launch a secondary campaign in early March (3/6) costing $800,000. They expect to see sales starting at $500,000 on 2/20, increasing by 20% every week for 6 weeks. Assuming a MARR of 12%, what is the present value of this project at the start of the campaign if they stop attributing sales to this on 4/3/2022?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Abbott wants to increase their marketing for Pedialyte leading up to St. Patrick's Day this year. They
launch a Superbowl ad on 2/13/2022, costing them $5,000,000, and they launch a secondary campaign
in early March (3/6) costing $800,000. They expect to see sales starting at $500,000 on 2/20, increasing
by 20% every week for 6 weeks. Assuming a MARR of 12%, what is the present value of this project at the
start of the campaign if they stop attributing sales to this on 4/3/2022?
$602,449
$597,437
$563,446
$321,998

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