Question-

Times are tough for Auger Biotech. Having raises $85 million in an initial public offering of its stock early in the year; the company is poised to launch its product. If Auger engages in a promotional campaign costing $60 million this year, its annual after-tax cash flow over the next five years will be only $700,000. If it does not undertake the campaign, it expects its after-tax cash flow to be minus $18 million annually for the same period. Assuming the company has decided to stay in its chose business, is this campaign worthwhile when the discount rate is 10%? Why or why not?