A producer of electronic clocks, ClockRUs (CRU) wants to create an advertising campaign to stimulate their demand. Based on CRU s experience, if they spend $250,000 on newspapers and magazines now, their sales should increase by $180,000 in the first year, and $150,000 in the second year. However, with the changing interest rate, and profitability concern, CRU must have 9% rate of return. a. What is the Present Value of year 1 sales increase (cash flow in year 1)?
b. What is the Present Value of year 2 sales increase (cash flow in year 2)?
c. What is the cash flow now (what is CF(0))?
d. Based on the NPV analysis, would you advise CRU to do the advertising? Explain why?

He set of companies a product goes through on the way to the consumer is called the a. economic utility b. cottage industry c. market saturation d. distribution chain

Match the various steps in the creative process undertaken by the ad agency for developing the campaign for wpu, to the steps in young's model of the creative process.creative process in developing wpu's campaignyoung's modelafter intensive analysis of the data and several rounds of brainstorming, the agency executives decided to take a break from this project (the wpu campaign), and instead work on a different client's project before tackling the wpu project again.using a combination of animatics and storyboards, the ad agency conducted research with a representative sample of sixty target consumers to pretest the campaign theme and the creative execution.during a brainstorming session in the creative department, a copywriter's suggestion for a slogan for wpu was recognized as an excellent central idea that could drive the campaign for wpu.the account planning, account management and creative departments at the ad agency had a series of meetings and brainstorming sessions to discuss the creative brief and the results of all the primary and secondary research done with the target consumers.the account planning and the account management groups at the ad agency conducted primary research with a representative sample of the target segment and also studied secondary research data to gain insights required for the campaign development process.

Consider each of the following cases: case accounting break-even unit price unit variable cost fixed costs depreciation 1 127,400 $ 38 $ 25 $ 711,000 ? 2 124,000 ? 41 2,500,000 $ 900,000 3 5,753 117 ? 171,000 100,000 required: (a) find the depreciation for case 1. (do not round your intermediate calculations.) (b) find the unit price for case 2. (do not round your intermediate calculations.) (c) find the unit variable cost for case 3. (do not round your intermediate calculations.)