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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 5 percent. Project of
Consider two mutually exclusive new product launch projects that Nagano Golf is considering. Assume the discount rate for both products is 5 percent. Project of A: Nagano NP-30 Professional that will take an initial investment of $590,000 at Time 0 Next five years Years 1 - 5), of sales will generate a consistent cash fcw of $225,000 per year. Introduction of new product at Year 6 will terminate further cash flows this project. Project 5: Nagano NX-20 High-end amateur clubs that will take an initial investment of $470,000 at Time 0. Cash flow at Year 1 is $140,000. In each subsequent year cash flow will grow at 10 percent per year. Introduction or new product year 6 will terminate further cash flows from this project. Complete the following table
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