Task 1: Template - https://docs.google.com/spreadsheets/d/1a3IU4FcKUXh6k5mhCLoJpXAUwMLYVBov-Psso_2Eqt4/edit?usp=sharing
Task 2: The price strategy that I used for my client is tiered package as I am able to offer different levels/tiers of service at different price points for a wedding. Each wedding package has a specific set of features and benefits, and the higher the tier, the more value the package is but it is more expensive. The pricing strategy is extremely expensive, however, the client is top tier and wanted everything to be designer. The wedding isn't for five years, but the contractual annual fee is $2,625,186,846.35. This multiple billion dollar wedding will make me a profit of 10% and will ensure that I deliver the best and fanciest wedding to ever exist.
Task 3: I will be not accepting the competitors offer to purchase the wedding client for $3,000,000. The present net value number is $6,036,647,678.93 which is much more than what a competitor could offer to get the client.
Task 4: The competitor offers to pay $5,000,000 for the client, however, the net present value for this organization is $6,308,296,824.49. Since the present net value is much for than what the competitor is willing to offer, I will have to decline the offer.
Task 5: The payback period for the wedding planning group is 0.0009696 which is extremely low. This is good as it represents a less risky investment for the wedding. This also showcases that the corporation will get an immediate return on investment, leading to high profits. The Accrual Accounting Rate of Return is extremely high at 158648.99%. This showcases a large return on profit and a great job of turning costs into revenues. The competitor offers $10,000,000 but the net present value of the customer is $4,527,024,811.65. I will have to decline the offer from the competitor as they undervalue what my business is able to make from the customer.