A brewery is considering adding a new line of craft beers to its product mix. The new beer will require additional brewing and bottling capacity at a cost of $15 million, but is expected to generate new sales of $5 million per year for the next 5 years. If the brewery has a cost of capital of 6%, what is the NPV of this investment?

You are considering an investment opportunity that will cost you $20,000 up front, but return $5,000 per year for the next 10 years. What is the IRR for this investment?

 

A company that creates education products is planning to create a suite of books to he customers prepare for high-stakes tests for entry into college and grad school. They h house writers to create these books. Due to the expertise needed in creating this content be possible to hire temporary writers within the planned time-frame. Which pro  undertaken?

Test Prep Book Undergraduate Exam Prep Dental School Exam Prep Graduate School Exam Prep Law School Exam Prep Medical School Exam Prep NPV $800,000 $250,000 $450,000 $320,000 $400,000 # of Writers Needed 24 8 12 9 10