Q1) Ford is going to purchase a Super Bowl ad for $3. They expect to generate 110M views.

Q1) Ford is going to purchase a Super Bowl ad for $3.5M. They expect to generate 110M views. Their research shows that they convert 1 out of every 100,000 customer views per month for 6 months into customers. Their average profit per customer is $1,000.

a) What is the return of the investment (ROI)?

b) What is the payback period? If Ford requires ad spend to be paid back in 3 months, do they make this spend?

c) Ford has an opportunity to earn a return of 2% per month on the money if they dont. What is the NPV of the investment?