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Clorox is thinking about introudcing a new brand of cleaning products. Marketing and developing the new products will cost 512 million dollars. In one year,
Clorox is thinking about introudcing a new brand of cleaning products. Marketing and developing the new products will cost 512 million dollars. In one year, the new products will generate a cash flow of 48 million dollars. In two years, the new products will generate a cash flow of 71 million dollars. In three years, the new products will generate a cash flow of 95 million dollars. After that, cash flows are expected to grow by 2% forever. If the cost of capital is 8%, what is the NPV of this project (in millions)?
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