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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

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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: Project B: Year 0 12345 Nagano NP-30. Professional clubs that will take an initial investment of $660,000 at Year O. For each of the next 5 years, (Years 1-5), sales will generate a consistent cash flow of $295,000 per year. Introduction of new product at Year 6 will terminate further cash flows from this project. Nagano NX-20. High-end amateur clubs that will take an initial investment of $710,000 at Year 0. Cash flow at Year 1 is $210,000. 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. NP-30 $660,000 $ NX-20 710,000 295,000 210,000 295,000 231,000 295,000 254,100 295,000 279,510 295,000 307,461 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.) Answer is not complete. NP-30 Payback years IRR % 1.496 NPV NX-20 years %

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