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7. The T-Toy Corporation would like to decide to which new product, out of four current candidates, it should commit its resources for R&D, production,

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7. The T-Toy Corporation would like to decide to which new product, out of four current candidates, it should commit its resources for R&D, production, and subsequent distribution. The following table shows the estimated cash flows for each one of the proposed products. If the MARR for this company is 10%, which product should be selected? Year Product 0 2 3 1 2 3 - $ 80,000-$ 80,000 $70,000 $160,000 --150,000 50,000 50,000 55,000 -200,000 -200,000 180,000 180,000 --380,000 20,000 170,000 170,000 $160,000 55,000 180,000 170,000 a. Use internal rate of return on incremental investment b. Use annual worth on total investment

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