"A company is considering entering into a new marketing campaign. If it engages in this marketing...

"A company is considering entering into a new marketing campaign. If it engages in this marketing campaign, it must pay $10,000 immediately and $8,000 each at the end of year 1 and year 2. The company believes its annual revenues due to the marketing campaign will be $12,000 at the end of year 1, $10,000 at the end of year 2, and $7,000 at the end of year 3. What is the annual equivalent worth of this marketing campaign over the next three years? The interest rate is 5.5% compounded annually."

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jeff jeffy answered 2 years ago

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