Your startup LLC (which pays no income tax) has $500K available for a one year...
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Your startup LLC (which pays no income tax) has $500K available for a one year marketing card your Super Software product in arket X. You note that Market Y would also be a great place for a mang campaign. The cost of a campaign in Y would be $300K. You present the firm's CFO with two option. Al Run campaign in just Market X. B) Run a campaign in both X and Y. funding the campaign with a long term from Bank of China with a 10% annual interest rate. Here is more relevant financial information Notes for Plan B Loan amount for B) Debt int rate is 300 K 10.0% Projected Annual Income Statements for marketing campaigns (SK) Estimated Sales Generated from Campaign(s) Direct Campaign Cost Required Interest Cost @10% Campaign Net Income Plan Plan B 750.00 1200.00 300.00 800.00 0.00 250.00 Campaign Profit Margin Use this info to answer the following questions. OPRZEWOX UDUK TANT RUV TOPO 21 19 What is the required interest cost for Plan B? Write your answer as a positive number. IE write "500000"net "-50.0000" 22 Assuming nothing goes wrong, which plan has the higher profit margin? AWEROV
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