Financial Model - Your model should cover 3 years
· 15 marks for your financial models for the Latin America expansion and U.S. market entry alternatives including your analysis & interpretation of your models
· Your model should cover 3 years and include a total for all 3 years.
· You’re modeling the change from the existing situation so the starting metric is “Incremental subscribed households (subscribers)”.
· It is not possible to do a “base –> base with innovation –> change (marketing business case II)” with the information provided in the case so please do not waste time trying.
· The model should be formatted properly using the principles taught in MKM704.
· It is not necessary to calculate a NPV or IRR.
· In the Latin America scenario, incremental advertising revenue is $1.53, $3.57 and $5.1 million for years 1, 2 and 3, respectively.
· In the U.S. market entry, incremental advertising revenue is $0.0, $2.25 and $3.0 million for years 1, 2 and 3, respectively.
Solution: Financial Model - Your model should cover 3 years