Business, 02.12.2019 00:31 sindy35111

Mike karanikolas wants to enter the french market with his usual strategy of using influencers. two influencers are considered to be hired.
the first one is a young growing personality and asks for a consideration of 100 000€ to be paid at the start of the contract, and mike determines that over 4 years, this particular influencer would yield successively each year: 20 000€, 30 000€, 40 000€, 50 000€. those amounts would be actualised at a 10% rate to take risk into account.
is it a good investment? answer to this question based on two selection criteria: net present value and internal rate of return.

the second influencer is more stable and is asking for the same 100 000€ consideration, but revenues would be more stable at 35 000€ every year at the end of the next 4 years.
is the second influencer a better choice than the first influencer? answer to this question based on the npv criterion.

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Mike karanikolas wants to enter the french market with his usual strategy of using influencers. two...

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