The great giant corp. has a management contract with its newly hired president. the contract requires a lump sum payment of $24,800,000 be paid to the president upon the completion of her first 9 years of service. the company wants to set aside an equal amount of funds each year to cover this anticipated cash outflow. the company can earn 8 percent on these funds. how much must the company set aside each year for this purpose?

Total marketing effort is a term used to describe the critical decision factors that affect demand: price, advertising, distribution, and product quality. define the variable x to represent total marketing effort. a typical model that is used to predict demand as a function of total marketing effort is based on the power function: d = axb suppose that a is a positive number. different model forms result from varying the constant b. sketch the graphs of this model for b = 0, b = 1, 0< b< 1, b< 0, and b> 1. (we encourage you to use excel to do this.) what does each model tell you about the relationship between demand and marketing effort? what assumptions are implied? are they reasonable? how would you go about selecting the appropriate model?