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Kingsway Inc. is considering a new product launch. The firm expects to have annual operating cash flows of $300,000 for the next 4 years. Kingsway

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Kingsway Inc. is considering a new product launch. The firm expects to have annual operating cash flows of $300,000 for the next 4 years. Kingsway Inc. uses a discount rate of 10 percent for new product launches. The initial investment is $250,000. Assume that the project has no salvage value at the end of its economic life. . What is the NPV of the new project? Let's assume that after the first year, the project can be dismantled and sold for $100,000. If the estimates of remaining cash flows are revised based on the first year's experience, at what level of expected cash flows does it make sense to abandon the project

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