8. Suppose you are asked to decide whether or not a new consumer product should...
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Finance
8. Suppose you are asked to decide whether or not a new consumer product should be launched. Based on projected sales and costs, you expect that the cash flows over the five year life of the project will be as follows. The discount rate is 6%. The payback cutoff period is 3 years. Please calculate the decision rules and make decisions as to accept or reject the project. Then make your overall decision whether to accept or reject this project.
year
investment
0
-12,000
1
1,200
2
1,900
3
2,700
4
7,100
Investment Calculation
Accept or Reject?
Payback Period
Profitably Index
IRR
NPV
Overall Decision
Answer & Explanation
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