Option 1 Hire a large group of micro-influencers (<10k followers) to promote your new line on instagram. You will pay your micro-influencers an average of 1000 each in a given year. You expect each micro influencers to generate 2,000 in cash flow from sales. The number of micro-influencers in your program will be as follows: Year 1 - 120 micro influencers Year 2 - Increase to 175 micro influencers total Year 3 - Increase to 275 micro influencers total

Option 2 Hire a select group of mega influencers (>100k followers) to promote the new line on instagram. You will pay each mega-influencers an average of 7,500 each in a given year. You expect each mega-influencer to generate 20,000 in cash flow from sales. The number of mega-influencers in your program is as follows: Year 1 - 10 mega-influencers Year 2 - Increase to 15 mega influencers total Year 3 - Increase to 25 mega influencers total

For both options, assume all cash flows occur at the end of the year Interest Rates on Spanish government bonds 3 yr - 3% 5 yr - 4% 10 yr - 6% 30 yr - 9% Interest Rates on U.S. government bonds 3 yr - 4% 5 yr - 5% 10 yr - 7% 30 yr - 10% Which option will you recommend to your manager? Why? What are three specific pieces of information that would make you change your decision?