1. A strategy is being consider by the management of a chocolate manufacturer. The brand is called last mile and the tag line is one bite to get you to the finish The objective of the company in the next 5 years is to become the chocolate that people who work long hard hours rely on for a healthy mental and physical boost. The chocolate is being branded as a relatively healthy lift to mental and physical clarity as well as the best tasting dark chocolate with interesting twists like dried pineapple or banana added. It will be molded in the shape small coffee cups. The marketing strategy is to distribute the chocolate for free to doctors, nurses and physician assistants, FDNY, NYPD, EMS teams, air traffic controllers and pilots who work at in trying stressful environments. The goal is that they will eat the chocolate during their shifts and share their opinions with friends, family and followers on social media.

The cost of executing this strategy will be the free product, shipping, logistics, and social media that is used to influence the general public to buy the product. The success of the strategy will be measured by the IRR. If the IRR calculations based on projections of costs and revenues exceed 14% then the board of directors will sign off on the strategy.

Based on the following data the marketing strategy does result in an IRR of over 14%.

time	cash flow from marketing strategy
0	-100,000
1	-100,000
2	-50,000
3	125000
4	200,000
5	265,000

True

False