You are Chief Financial Officer at K-Viro, Inc., the leading inventor of the Covid-19 chewable gummy vaccine, shown to be 101% effective. The media has called this product the most revolutionary scientific discovery since the iPhone. Given the positive sentiment around the company, your firms Chief Marketing Officer, Roberto Santos, wants to do a massive advertising campaign around the world. The campaign will cost $50,000,000. Currently, sales at K-Viro are $0 as the chewable vaccine is the first product to make it through FDA approval for the company. Your financial analyst, Frederick Smith, projects Sales to be $1,500,000 with total costs to be $600,000 next year. It is expected that sales will grow 50% in year 2, 30% in years 3 & 4, and then 5% year 5 and beyond. Costs will grow similarly. Your tax rate is 20% for all years.

E. Frederick Smith, financial analyst, went to school at Enron University, College of Energy Trading and Accounting. As such, the actual growth figures were far worse than projected. The actual growth figures for the project were: Year 1 Sales were $1,000,000 & Costs $800,000 with Year 2 growth of 10%, Year 3 growth of -10%, Year 4 30%. Year 5 and Beyond Sales would be $0 as the product is no longer needed. What is the NPV (under a 7% cost of capital), IRR and payback period under the actual results? As CFO, what would you tell the CEO about the companys future, using your calculated answers for NPV and IRR?

I can't quite understand E, please help thank you!