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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 15 percent.
Project A:Nagano NP-30.
Professional clubs that will take an initial investment of $675,000 at Year 0.
For each of the next 5 years (Years 1-5), sales will generate a consistent cash flow of $224,000 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 $430,000 at Year 0. Cash flow at Year 1 is $125,000. 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.
\table[[Year,NP-30,NX-20],[0,-$675,000,-$430,00
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