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PLEASE SHOW ALL WORK & THANK YOU IN ADVANCE! Best Ever Results Inc. is considering branching out into a new product line. They forecast annual

PLEASE SHOW ALL WORK & THANK YOU IN ADVANCE!

Best Ever Results Inc. is considering branching out into a new product line. They forecast annual revenues of $600,000 from this new product line. This will require an initial investment of $1,000,000. Additionally, this new product will cannibalize existing sales by an estimated $200,000 per year starting in year three, and then continuing for 7 more years. The firms cost of capital is 11%. Calculate the NPV of this project.

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