1. 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 addition annual cash flows for $150,000 forever, starting 1 year from now. (6 points)

1. If your companys cost of capital (the discount rate) is 10% should it undertake the marketing campaign? Explain.
2. What is the marketing campaigns IRR?
3. Should you undertake the marketing campaign? Use an IF statement to reach the conclusion