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The smartphone-manufacturing company ZEA Mobile Limited wants to increase their sales. The company has hired a consultant for conducting market research and identifying ways to

The smartphone-manufacturing company ZEA Mobile Limited wants to increase their sales. The company has hired a consultant for conducting market research and identifying ways to increase the sales. The consultant suggested the following options: Option 1: Launch a brand awareness campaign in all the zones, including ads in television / newspaper / social media, tie-ups with social media influencers, etc. to recreate the brand image through brand ambassadors. Option 2: Launch a sales campaign in the top four metro cities by aggressively targeting customers through discounts and newspaper ads. ZEA has to select a campaign by considering the impact on sales and the initial cost associated with the campaigns. Both campaigns will have different impacts on the sales. The monthly cash flows are shared below. Monthly interest rate is 2.5%. Month 0 Month 1 Month 2 Month 3 Month 4 Month 5 Option 1: Brand Campaign -2,00,00,000 42,50,000 48,02,500 54,16,625 60,98,856 68,56,339 Option 2: Sales Campaign -20,00,000 8,50,000 9,45,200 10,50,736 - - Calculate the NPV of option 1.

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