PepsiCo Inc. is planning a marketing campaign that will cost $200 million. The campaign is expected to increase annual sales by $50 million over the next 5 years. The company’s discount rate is 7%.

• Requirements:
  • Calculate the Net Present Value (NPV) of the marketing campaign.
  • Determine the Payback Period.
  • Assess the potential impact on the company’s market share and brand value.

Provide a recommendation on whether to proceed with the campaign based on the analysis.