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please help me 53 Consider two mutually exclusive new product launch projects that Nagano Golf is considering. Assume that the discount rate for Nagano Golf
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53 Consider two mutually exclusive new product launch projects that Nagano Golf is considering. Assume that the discount rate for Nagano Golf is 18 percent Project A: Nagano NP-30. Professional clubs that will take an initial investment of $834,000 at time O. Next five years (years 1-5) of sales will generate a consistent cash flow of $372,000 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 $590,000 at time 0. Cash flow at year 1 is $240,000. 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. 02:02:03 Year 0 1 2. 3 4 5 NP-30 -$834,000 372,000 372,000 372,000 372,000 372,000 NX-20 -$590,000 240,000 264,000 290,400 319,440 351,384 Complete the following table: (Do not round intermediate calculations. Round the "PI" answers to 3 decimal places and other answers to 2 decimal places. Omit $ sign in your response.) NP-30 NX-20 Net present value Internal rate of return Incremental internal rate of return Profitability index TI $ $ Implications (Click to select) (Click to select) Click to select (Click to select) Accept NX-20 Reject NX-20 Accept NP-30 Reject NP-30Step by Step Solution
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