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Consider two mutually exclusive new product launch projects that Nagano Golf is considering. Assume the discount rate for both products is 15 percent. Project A:Nagano

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Consider two mutually exclusive new product launch projects that Nagano Golf is considering. Assume the discount rate for both products is 15 percent. Project A:Nagano NP-30. Professional clubs that will take an initial investment of $735,000 at Year O. For each of the next 5 years (Years 1-5), sales will generate a consistent cash flow of $239,000 per year. Introduction of new product at Year 6 will terminate further cash flows from this project. Project B:Nagano NX-20. High-end amateur clubs that will take an initial investment of $460,000 at Year O. Cash flow at Year 1 is $130,000. In each subsequent year, cash flow will grow at 10 percent per year. Introduction of new product at Year 6 will terminate further cash flows from this project. Year O NP-30 NX-20 735,000 460,000 239,000 130,000 239,000 143,000 239,000 157,300 239,000 173,030 239,000 190,333 2 3 4 Complete the following table: (Do not round intermediate calculations. Round your "PI" answers to 3 decimal places, e.g., 32.161, and other answers to 2 decimal places, e.g., 32.16. Enter your IRR answers as a percent.) NP-30 NX-20 Payback IRR years % years % PI NPV

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