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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 1 5 percent. Project
Consider two mutually exclusive new product launch projects that Nagano Golf is considering. Assume the discount rate for both products is percent.
Project A:Nagano NP
Professional clubs that will take an initial investment of $ at Year
For each of the next years Years sales will generate a consistent cash flow of $ per year.
Introduction of new product at Year will terminate further cash flows from this project.
Project B:Nagano NX
Highend amateur clubs that will take an initial investment of $ at Year Cash flow at Year is $ In each subsequent year, cash flow will grow at percent per year.
Introduction of new product at Year will terminate further cash flows from this project.
tableYear
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