Assume that after further research and examination, marketing contributed only 50% to new sales in UK, Bulgaria, and Poland, but 100% to new sales in Romania. Your supervisor as asked you to formulate a decision as to whether the company should continue the marketing campaigns.

In your analysis, please include explanations to how IRR, NPV, and payback were calculated.

Sports Sponsorship ROMI analysis 100% F1 Impact factor Estimate of contribution of marketing to new sales Year 2 Year 0 Year 1 ear Sponsorship Related Sales 500,000 S 750,000S1,000,000 S 2,500,000 S2,500,000S2,500,000 Romania Campaign UK Campaign S 2,500,000 S2,500,000 Bulgaria Campaign Poland Campaign S 2,500,000 S2,500,000 $ 2,500,000 S2,500,000 Total revenues S 2,500,000 S10,000,000 S 10,000,000 COGS S (1,750,000) S (7,000,000) S (7,000.000) Net Profit 750,000S3,000,000 S3,000.000 Sponsorship cost S (250,000) S (850.000) S (250,000) S(600,000) S (850,000) S (850,000) Marketing activation cost S 750,000 Total Costs (250,000) S (1.100,000)S (1.450,000) S (1.600,000 EBIT S (250,000) S(350,000 1,550,000 S1,400,000 Tax S 96,250 S 134,750 S(596,750) S(539.000) Net Profit (or loss) After Tax S (153,750) (215,250) S 861,000 953,250S 132% IRR NPV $916,813 1.4 Payback (years) S (369,000)S 584,250 0.387096774