A Textile Manufacturer Plans to Improve Revenue from Its Heating

Short Answer

A textile manufacturer plans to improve revenue from its heating blankets, sold primarily in the northern areas of the United States by increasing its marketing activities. A total of
$170,000 spent now in marketing is expected to generate new revenue of $400,000 per year. The MARR is 6% per year and the evaluation period is 9 years. Use simple payback analysis to determine the acceptability of the marketing investment.