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What is the discounted cash flow of campaign b

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Reference no: EM132573095

A manager is deciding between two marketing campaigns:

  • Campaign A will generate net returns of $145,000 one year from now and $40,000 three years from now.
  • Campaign B will generate net returns of $25,000 two years from now and $145,000 four years from now.

The required rate of return is 6.00%.

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

Question b. What is the Discounted Cash Flow (DCF) of Campaign B?

Question c. Which campaign is economically better for the company? ( A OR B)

Reference no: EM132573095

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