Question

mathematics of finance

A manager is deciding between two marketing campaigns:


  • Campaign A will generate net returns of $125,000 one year from now and $30,000 three years from now.

  • Campaign B will generate net returns of $25,000 two years from now and $125,000 four years from now.


  • The required rate of return is 8.00%.


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


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