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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 2 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.
Year NP NX
$ $
Complete the following table: Do not round intermediate calculations. Round your PI answers to decimal places, eg and other answers to decimal places, eg Enter your IRR answers as a percent.
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