Your firm is considering the launch of a new product, the XJ5. The upfront development...
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Finance
Your firm is considering the launch of a new product, the XJ5. The upfront development cost is $10.0 million, and you expect to earn a cash flow of $3.0 million per year for the next five years. The appropriate hurdle rate for the XJ5 project is 10.00% per year. What is the XJ5 projects net present value (NPV)?
A.
-$1.37 million
B.
-$5.00 million
C.
-$10.00 million
D.
$1.37 million
E.
$5.00 million
F.
$11.37 million
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