Calculate the Payback periods and their NPV with discount rate of 12%, for the projects with the following cash flow. DCF Homework A company is considering the launch of a new product: Investment required in equipment: 150000; Project life cycle: 5 years, Value of equipment in year 6:10000, Cash inflow as follows: An existing product can be discontinued immediately or retained instead of the new product for five years. If retained a cash inflow of 12000 p.a would be expected. Discount rate (cost of capital) is 15% p.a. - Calculate the expected net present value of the new product. ( 67k ) - Advise the company whether to launch the new product or retain the existing one (67k+10k>40k, therefore launch new product)