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QUESTION $5$

Strategic meeting results in the following: Reach out to the NYC Sports Community and illustrate that sports drink "BIG APPLE" is healthy and tastes good and is a NYC product. It taste better than sports drinks that are currently on the market and has no added sugar and is low in natural sugars. It is all natural and is better and hydrating an athlete than any product currently on the market. It comes in many flavors. The marketing department must show that the internal rate of return on their marketing strategy is at lease $14\%.$ The following is a summary of the marketing strategy.

$1.$Donate a percent $\%$ of sales to Public Schools Athletic League $($PSAL$)$

$2.$Search for an influencer who benefitted from PSAL who is willing to promote the product.

$3.$For two years we will supply the product for free to all PSAL athletes.

$4.$Make a deal with NYC stores to promote this healthy drink that is giving back to the community.

$5.$Make deals with local manufacturers for high quality low cost production.

Based on the cash flow numbers in this problem does the following strategy meet the IRR threshold? True $=$ yes, False $=$ no$.$

year Cash Flow Internal Rate of Return

$0-500,000\mathrm{.}00$

$1-400,000\mathrm{.}00$

$20\mathrm{.}00$

$3200,000\mathrm{.}00$

$4300,000\mathrm{.}00$

$5400,000\mathrm{.}00$

$6475,000\mathrm{.}00$

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