Question: Please answer part A, B, and C in Excel. Please show the formulas used in excel for each answer. Thank you! 1. You work in
Please answer part A, B, and C in Excel. Please show the formulas used in excel for each answer. Thank you!
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.
a. If your companys cost of capital (the discount rate) is 10% should it undertake the marketing campaign? Explain.
b. What is the marketing campaigns IRR?
c. Should you undertake the marketing campaign? Use an IF statement to reach the conclusion.
Please answer part A, B, and C in Excel. Please show the formulas used in excel for each answer. Thank you!
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