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Which of the following statements is true in relation to the information presented in the table? The interest rate affected the present value of all of these options. Only large companies can produce profits in the short term. Projects that incur costs will always produce a profit. Short-term payoffs may not always be the best option. Campaign today (in thousands) Dollars realized Dollars realized one year from today (in thousands) Globatel -21 210 Wireless Yummy Tummy 135 Pudding NiCad 60 -24 Electric Cars Excelsis Hot Air Balloons -55 108 Dawn and Amelia work for an international advertising agency. They are presented with four possible product campaigns for the year, of which they must choose only one. The annual interest rate is 9%. They must choose the campaign which will be most profitable to the company overall. The chart indicates the costs and benefits for each of the projects. A negative value indicates costs are greater than benefits for that time period. Use the information in the chart to calculate the net present values, and answer the questions. What is the net present value of the Excelsis Hot Air Balloon campaign (in thousands)? EA thousand Using your net present value calculations, which of the four campaigns are Dawn and Amelia most likely to select? Excelsis Hot Air Balloons Yummy Tummy Pudding NiCad Electric Cars Globatel Wireless

Which of the following statements is true in relation to the information presented in the table? The interest rate affected the present value of all of these options. Only large companies can produce profits in the short term. Projects that incur costs will always produce a profit. Short-term payoffs may not always be the best option. Campaign today (in thousands) Dollars realized Dollars realized one year from today (in thousands) Globatel -21 210 Wireless Yummy Tummy 135 Pudding NiCad 60 -24 Electric Cars Excelsis Hot Air Balloons -55 108 Dawn and Amelia work for an international advertising agency. They are presented with four possible product campaigns for the year, of which they must choose only one. The annual interest rate is 9%. They must choose the campaign which will be most profitable to the company overall. The chart indicates the costs and benefits for each of the projects. A negative value indicates costs are greater than benefits for that time period. Use the information in the chart to calculate the net present values, and answer the questions. What is the net present value of the Excelsis Hot Air Balloon campaign (in thousands)? EA thousand Using your net present value calculations, which of the four campaigns are Dawn and Amelia most likely to select? Excelsis Hot Air Balloons Yummy Tummy Pudding NiCad Electric Cars Globatel Wireless

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Which of the following statements is true in relation to the information presented in the table? The interest rate affected the present value of all of these options. Only large companies can produce profits in the short term. Projects that incur costs will always produce a profit. Short-term payoffs may not always be the best option.
Transcribed Image Text:Which of the following statements is true in relation to the information presented in the table? The interest rate affected the present value of all of these options. Only large companies can produce profits in the short term. Projects that incur costs will always produce a profit. Short-term payoffs may not always be the best option.
Campaign today (in thousands) Dollars realized Dollars realized one year from today (in thousands) Globatel -21 210 Wireless Yummy Tummy 135 Pudding NiCad 60 -24 Electric Cars Excelsis Hot Air Balloons -55 108 Dawn and Amelia work for an international advertising agency. They are presented with four possible product campaigns for the year, of which they must choose only one. The annual interest rate is 9%. They must choose the campaign which will be most profitable to the company overall. The chart indicates the costs and benefits for each of the projects. A negative value indicates costs are greater than benefits for that time period. Use the information in the chart to calculate the net present values, and answer the questions. What is the net present value of the Excelsis Hot Air Balloon campaign (in thousands)? EA thousand Using your net present value calculations, which of the four campaigns are Dawn and Amelia most likely to select? Excelsis Hot Air Balloons Yummy Tummy Pudding NiCad Electric Cars Globatel Wireless
Transcribed Image Text:Campaign today (in thousands) Dollars realized Dollars realized one year from today (in thousands) Globatel -21 210 Wireless Yummy Tummy 135 Pudding NiCad 60 -24 Electric Cars Excelsis Hot Air Balloons -55 108 Dawn and Amelia work for an international advertising agency. They are presented with four possible product campaigns for the year, of which they must choose only one. The annual interest rate is 9%. They must choose the campaign which will be most profitable to the company overall. The chart indicates the costs and benefits for each of the projects. A negative value indicates costs are greater than benefits for that time period. Use the information in the chart to calculate the net present values, and answer the questions. What is the net present value of the Excelsis Hot Air Balloon campaign (in thousands)? EA thousand Using your net present value calculations, which of the four campaigns are Dawn and Amelia most likely to select? Excelsis Hot Air Balloons Yummy Tummy Pudding NiCad Electric Cars Globatel Wireless
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