Based upon the following cash flows, should Ooey Gooey Candy Makers introduce a new product, Skinny Minnie Diet Cuisine? The initial investment is $780,000, and the cost of capital is 12.2%.

Years Cash Flows 1 $ 90,000 2 $105,000 3 $105,000 4 $195,000 5 $195,000 6 $195,000

a.

Yes, the NPV is $288,410.60 and the IRR is 38.2%.

b.

No, the NPV is $211,589.40 and the IRR is 3.24%.

c.

Yes, the NPV is $175,478.98 and the IRR is 20.42%.

d.

No, the NPV is $75,375.18 and the IRR is 11.75%.