You are considering two possible marketing campaigns for a new product. The first marketing campaign requires an outlay next year of 2M, and then will pay 0.24M in all subsequent years. The second marketing campaign requires an outlay of 3M next year and then will pay 0.27M in all subsequent years. What is the IRR for the second marketing campaign?

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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You are considering two possible marketing
campaigns for a new product. The first
marketing campaign requires an outlay next
year of 2M, and then will pay 0.24M in all
subsequent years. The second marketing
campaign requires an outlay of 3M next year
and then will pay 0.27M in all subsequent
years.
What is the IRR for the second marketing
campaign?
*Make sure to input all percentage answers
as numeric values without symbols, and
use four decimal places of precision. For
example, if the answer is 6%, then enter
0.0600.
Transcribed Image Text:You are considering two possible marketing campaigns for a new product. The first marketing campaign requires an outlay next year of 2M, and then will pay 0.24M in all subsequent years. The second marketing campaign requires an outlay of 3M next year and then will pay 0.27M in all subsequent years. What is the IRR for the second marketing campaign? *Make sure to input all percentage answers as numeric values without symbols, and use four decimal places of precision. For example, if the answer is 6%, then enter 0.0600.
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