Assignment task:
IRR The management of a smartphone manufacturing company, ZEA Mobile Limited, wants to increase their sales. For this, the company hires a consultant for conducting market research and identifying the ways to increase sales. The consultant suggests the following ways: Launching a brand awareness campaign in all the zones, including ads on television/newspaper/social media, tie-ups with social media influencers, recreation of the brand image through brand ambassadors, etc Launching a sales campaign in the top four metro cities by aggressively targeting consumers through discounts and newspaper ads The company has to decide which campaign to select, considering its impact on the sales and its initial costs. Both these campaigns will have a different type of impact on the company's sales; the monthly cash flows are given below. Calculate the IRR of both the projects. Month 0 Month 1 Month 2 Month 3 Month 4 Month 5 Brand Campaign -2,00,00,000 42,50,000 48,02,500 54,16,625 60,98,856 68,56,339 Sales Campaign -20,00,000 8,50,000 9,45,200 10,50,736 - -