Question
Hadid Corporation, the largest and the most renowned producer of makeup products is considering partnership deals with 2 corporations. Kylie Corp. and Kendall Company to
Hadid Corporation, the largest and the most renowned producer of makeup products is considering partnership deals with 2 corporations. Kylie Corp. and Kendall Company to expand its corporations and to improve its efficiency. The partnership projects start up costs equals 15 million. Hadid's Corporations finest finance executives, Gigi Hadid and Bella Hadid estimated the expected benefits from partnering with the 2 companies. The cash flow forecast after the partnership with the 2 companies are as follows:
Forecasts Aster Inc. Escano Company
(In Millions)
Year 1 12 10
Year 2 15 17
Year 3 14 16
Year 4 21 18
Year 5 24 27
If the company requires 10 percent return on their investments and the projects are mutually exclusive, what is the difference between the NPVs of the 2 projects?
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