VWX Corporation is planning to invest in a new marketing campaign costing EUR 250,000. The campaign is expected to last for 4 years and will be depreciated on a straight-line basis. The company's cost of capital is 8%. The expected cash flows and profits are:

• Year 1:
  • Cash Flow: EUR 80,000
  • Profit: EUR 10,000
• Year 2:
  • Cash Flow: EUR 90,000
  • Profit: EUR 20,000
• Year 3:
  • Cash Flow: EUR 100,000
  • Profit: EUR 30,000
• Year 4:
  • Cash Flow: EUR 110,000
  • Profit: EUR 40,000

Requirements: a) Discuss the importance of relevant costs in capital budgeting. b) Compare and contrast the payback period and net present value (NPV) methods. c) Based on the provided information, calculate: i) The payback period. ii) The NPV of the marketing campaign. iii) Provide a recommendation on whether VWX Corporation should proceed with the investment in the marketing campaign.