Question: The director of marketing or your organization asks for your advice regarding sponsorship deals she is contemplating. She has to choose from the following: a 15-year sponsorship paying $100,000 per year, a 15-year sponsorship initially paying $75,000 per year and increasing 5% each year, and 15-year sponsorship paying $45,000 per year but increasing 12% each year.
What questions about her firm and about the potential sponsors should she contemplate?