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Please show how to answer these in excel. lou work in a company that sells furniture. The company is considering a new marketing campaign. The
Please show how to answer these in excel.
lou work in a company that sells furniture. The company is considering a new marketing campaign. The marketing campaign cost is $1M to be paid immediately. You expect that as a result of the campaign, the company will increase its market share and will senerate addition annual cash flows for $150,000 forever, starting 1 year from now. (6 points) a. If your company's cost of capital (the discount rate) is 10% should it undertake the marketing campaign? Explain. b. What is the marketing campaign's IRR? c. Should you undertake the marketing campaign? Use an IF statement to reach the conclusion. lou work in a company that sells furniture. The company is considering a new marketing campaign. The marketing campaign cost is $1M to be paid immediately. You expect that as a result of the campaign, the company will increase its market share and will senerate addition annual cash flows for $150,000 forever, starting 1 year from now. (6 points) a. If your company's cost of capital (the discount rate) is 10% should it undertake the marketing campaign? Explain. b. What is the marketing campaign's IRR? c. Should you undertake the marketing campaign? Use an IF statement to reach the conclusionStep by Step Solution
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