Answer Happy

Noting the success of Energizer's long-running advertising campaign featuring a robotic rabbit and AFLAC's campaign showcasing a duck, you decide to combine the two ideas and run a two-year advertising campaign for your company featuring a robotic duck You forecast that at the end of the first year, you will incur an advertising cost of $100,000 but make no profit. At the end of the second year, you will incur another cost of $50,000, and your advertising will lead to an additional after tax operating profit of $200,000. At the end of the third year, you will have no further costs, but the lingering effects of your advertising will lead to another after-tax profit of $200,000. There are no further costs or profits, and you are financing the campaign with internally generated funds If your discount rate is 10 percent, the net present value of your campaign is dollars (Round your answer to two decimal places. Enter a negativo sign if your answer is a loss) Should you undertake the advertising campaign? Why or why not? OA. You should not undertake this advertising campaign as the cost incurred in the present perlod is greater than your present value O B. You should not undertake this advertising campaign as the cost incurred in the present perlod is greater than your future value OC. You should undertake this advertising campaign because the present value in positive. O D. You should undertake this advertising campaign because the net present value in positive