Parkes Book Comany\'s management is considering an advertising program that woul
ID: 2370690 • Letter: P
Question
Parkes Book Comany's management is considering an advertising program that would required an initial expenditure of $165500 and bring in additional sales over the next five years. The projected additional sales revenue in year 1 is $75000, with the associated expenses of $25000. The additional sales revenue and expenses from the advertising program are projected to increase by 10 per cent each year.(Ignore company income taxes.) Required 1 calculate the payback period for the advertising program 2. calculate the advertising program's net present value, assuming a required rate of return of 10 per cent.Explanation / Answer
u = object distance, v = image distance.
1 / u + 1 / v = 1 / 10
In Real is Positive sign convention, +ve magnification means a real image, but that's not how a magnifying glass is normally used. Making v / u positive (real image) gives:
1 / u + 1 / 2u = 1 / 10
3 / 2u = 1 / 10
u = 15 cm.
Making v / u negative (virtual image), gives:
v / u = - 2
1 / u - 1 / 2u = 1 / 10
1 / 2u = 1 / 10
u = 5 cm.