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A marketing company intends to distribute a new product. It is expected to produce net returns of $18,000 per year for the first four years
A marketing company intends to distribute a new product. It is expected to produce net returns of $18,000 per year for the first four years and $11,000 per year for the following three years. The facilities required to distribute the product will cost $70,000 with a disposal value of $13,000 after seven years. The facilities will require a major facelift costing $11,000 each after three years and after five years. If the company requires a return on investment of 10%, should the company distribute the new product? The company distribute the new product
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