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NEW QUESTION: 1

A. Option A
B. Option B
C. Option D
D. Option C
Answer: D

NEW QUESTION: 2
You have just gotten the results from a conversion campaign you ran for a membership site for 2 weeks:
There were 9 new customers acquired through the campaign.
Customers usually pay 6 months on average.
The monthly membership fee is $15.
The total amount you spent on the campaign was $400.
What is the ROAS for this campaign?
Choose only ONE best answer.
A. $102.50
B. $265
C. -$265
D. $410
Answer: D
Explanation:
Explanation
Return on Ad Spend (ROAS) measures gross revenue generated directly for every dollar spent on the advertising campaign:
ROAS = Revenue From Ad Campaign / Cost Of The Ad Campaign
A more accurate way to calculate ROAS when you have recurring revenue is with the following formula:
ROAS = (# of new customers acquired from Campaign x LTV of a New Customer) - Cost of Ad Campaign In this case, you would need the following info:
# of new customer => 9
LTV of new customers => 6 * $15 = $90
Cost of Ad Campaign => $400
ROAS = 9 * $90 - $400 = $410

NEW QUESTION: 3
Which option is the best description for NPV?
A. NPV is factored into the ROI calculation.
B. The adoption of licensed third-party solutions and services may result in a lower NPV.
C. The NPV takes into consideration the direct and indirect costs of maintaining technology solutions and services.
D. The opportunity to reduce NPV is a measureable business outcome and benefit to the customer business.
E. The NPV of technology solutions and services indicates the monetary value that those solutions bring to the business.
Answer: E