The Purpose of an Advocacy Advertisement Is to

question 91

Multiple Choice

The purpose of an advocacy advertisement is to

• A)reinforce previous knowledge of a product.
• B)tell people what a company is, what it can do, and where it is located.
• C)promote a specific brand's features and benefits.
• D)state the position of a company on an issue.

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Definitions:

NPV

Net Present Value; the difference between the present value of cash inflows and the present value of cash outflows over a period of time.

Payback

The length of time it takes for an investment to generate an amount of money equal to the cost of the investment, used as a basic measure of the investment's risk.

Discounted Payback

The period of time it takes for an investment’s cash flows, discounted at a particular rate, to cover its initial cost.

Discounted Payback Rule

A capital budgeting technique that determines the amount of time required for discounted cash flows from a project to repay the initial investment.