Your startup LLC (which pays no income tax) has $SOOK available for a one year...
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Your startup LLC (which pays no income tax) has $SOOK available for a one year marketing campaign of your SuperSoftware product in Market X. You note that Market Y would also be a great place for a marketing campaign. The cost of a campaign in Y would be $300K. You present the firm's CFO with two options. All Rina campaign in just Market X. B) Run a campaign in both X and Y funding the campaign with a long term loan 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 intrate is 300 K 10.0% Plan 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 B 750 00 1200.00 -500.00 800 00 0.00 250.00 Campaign Profit Margin Use this info to answer the following questions, 19 Assuming nothing goes wrong, which plan has the lower Net Income (NI? O Plan B Not enough information is provided to answer this question Both are the same. Plan A 20
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