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Platypus wants to launch three, new hydration reservoir systems for day hikers. Senior management will limit introduction to only on system. DayTrek has an investment

Platypus wants to launch three, new hydration reservoir systems for day hikers. Senior management will limit introduction to only on system. DayTrek has an investment of $139,000 and over a four year period is projected to have sales (beginning with year one and going to year four) of $47,400, $60,250, $68,500, and $73,220. HikePak requires an investment of $185,000, with forecasted sales of $35,750, $61,480, $81,700, and $89,900. HydraLite requires a $112,785 investment. Its sales are projected to be $45,845, $81,325, $48,600, and $46,350. Platypus uses an 8.75% cost of capital (i.e., discount rate).

(1) If Platypus uses cumulative cash flow, which product is chosen? ___________________

(2) If Platypus uses the discounted cash flow analysis, what are the totals for the three different models?

EZ-Brite: _____________ Cold-Glo: _____________ Owls Eye: _____________

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