Digital Marketing Student needing some advice!

Hi Accounting,

I am a digital marketing masters student. I have a question in one of my assignments stating the following 'Explain the likely short term impacts of an investment in product development in machines to support your digital marketing campaign and the likely resulting effect on revenues, costs, cashflow and loan repayment that would likely result from the investment'. I have the financial statement of position and income statement and a cash flow sheet. I can provide these numbers if needed.

I am struggling to understand how to work it out. For example if there is an investment of 50,000 as a base for starting how do i go about doing the maths? what formulas do I use? If you need any information please reply to this thread. Hard module for someone who is trying to get into marketing not accounting!

Thanks in advance :smile:

(No nasty comments please)

Reply 1

MindMax2000

Universities Forum Helper

Original post by bmthsleepwalking

(No nasty comments please)

I am now confused, Why are they giving you an investment appraisal question in a digital marketing course? As someone who has been dabbling in both areas, they shouldn't really cross over.

You are looking at investment appriasal essentially (unless they are throwing you a curve ball, then anything goes). Look at NPV, ARR, IRR, and payback period; they're the standard tools for investment appraisal (unless we're talking about discounted cash flow, then we're venturing into finance degree material).

To do the accounting question properly, you would need all the information you can get your hands on (as they will come in dribs and drabs). You will then have to assemble the picture based on what you can derive from each piece of information. The maths is generally straightforward, so you shouldn't be pulling your hair out like those in mathematics, actuarial science, mathematical economics, engineering, or physics.

I don't have enough information on the context to give you a more detailed answer/pointers on what can help you in analysing the financial impact on your digital campaign. If you can provide all the details, including the numbers, that would help significantly.

As TSR does not allow us to provide full on answers, I can only point you in certain directions.