SCENARIO Taggart-Galt Corporation (TGC) is a cosmetics retailer, specializing in private label fragrances for men and women. The companys vision is to help people Discover Your Fragrance. To aid their continued expansion, the companys CEO has approved $1,650,000 in new project funding. Two projects are currently being reviewed by senior management. Each must pass the 12% company hurdle rate to be approved. You, as the lead Project Manager, must make a formal recommendation to senior management and then be responsible for implementing that project. Project Gamma: R&D has developed an in-store electronic assistant (I-sea) that helps customers find their preferred fragrance 34% faster than traditional in-store beauty consultants. R&D needs $1,500,000 immediately to manufacture the 20 I-sea needed for stores. Year 1 will generate no new revenue for TGC, but Years 2 through 4 will generate $750,000 in additional inflows every year. Project Rho: Marketing has successfully tested a new advertising campaign that increases customer loyalty by 19%. They need $780,000 to buy time and space in major marketing channels (TV, Radio, Print, and Internet). While this money will be entirely spent at the beginning, the increased loyalty has long-lasting effects, generating additional inflows of $285,000 per year for Years 1 through 4. DELIVERABLES 1. Financial Analysis You must submit/attach your Excel calculations What is the NPV for each project? What is the Payback period (in years) for each project? 2. Formal Recommendation Choose. There are insufficient resources for both. In 5-6 sentences, clearly defend your recommendation.