Question: Create excel budget tool including net present value (NPV), internal rate of return (IRR), payback period, and profitability index (PI). A major new marketing/advertising campaign,

Create excel budget tool including net present value (NPV), internal rate of return (IRR), payback period, and profitability index (PI).

  • A major new marketing/advertising campaign, which will cost $2 million per year and last 6 years.
  • It is forecast that the campaign will increase sales/revenues and costs of sales by 15% per year.
  • Annual sales for the previous year were $20 million.
  • The marginal corporate tax rate is presumed to be 25%.
  • Being a moderate risk investment, the required rate of return of the project is 10%.

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