Finance chapter 11 and 24

Is this the Cash Flows??

The Shoe Store has decided to sell a new line of shoes that will have a selling price of $79 and a variable cost of $38 per pair. The company spent $187,000 for a marketing study that determined the company should sell 112,000 pairs per year for five years. The marketing study also determined that the company will lose sales of 28,000 pairs of Its high-priced shoes that sell for $109 and have variable costs of $54 a pair. The company will also increase sales of its in expensiveshoes by 39,000 pairs. The Inexpensive shoes sell for $39 and have variable costs of $24 per pair. The fixed costs each year will be $2.84 million. The company has also spent $1.29 million on research and development for the new shoes. The plant and equipment required will cost $18.6 million and will be depreciated on a straight-line basis over the life of the project. The new shoes will also require an increase In net working capital of $847,000 that will be returned at the end of the project. The tax rate Is 34 percent, and the cost of capital Is 12 percent What Is the IRR for the new line of shoes? 17.82 percent 16.11 percent -13.49 percent -18.33 percent 16.62 percent The option to wait Has a value equal to a project's NPV divided by the discount rate raised to a power equal to the delay period. Is independent of a project's discount rate. Has a value equal to the NPV of a project today versus its NPV at a later date. Generally has greater value when a project is related to a current trend. Is defined as temporarily shutting down a project for a period of time