A Local Marketing Firm Is Considering Launching a New and Extensive

question 23

Multiple Choice

A local marketing firm is considering launching a new and extensive social media marketing campaign. This investment of resources is being looked at through the length of the project since it is anticipated to last at least 5 years. What financial calculation should be used to compute the investment's value, taking into account the time value of money?

• A) ROI
• B) NPV
• C) EVA
• D) IRR
• E) TCO

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Definitions:

Tax Rate

The proportion of income that the government taxes an individual or business.

Profit and Loss Statement

A financial statement that summarizes revenues, costs, and expenses incurred during a specific period, usually a fiscal quarter or year.

Total Contribution Margin

The difference between total sales revenue and total variable costs, indicating how much revenue is available to cover fixed costs and generate profit.

Sold Units

The total number of units of a product that have been sold during a specific period.