You 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 generate additional annual cash flows of $150,000 forever, starting 1 year from now.

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?