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Please show work and step for the answer thank you. 19_ Comparing Investment Criteria Consider tvo mutually exclusive new product launch projects that Nagano Golf
Please show work and step for the answer thank you.
19_ Comparing Investment Criteria Consider tvo mutually exclusive new product launch projects that Nagano Golf is considenng_ Assume the discount rate for both products is 15 perceht. Project A: Nagano NP-30. Professional clubs that will take an initial investment of $735,000 at Year O_For each of the next 5years (Years 15): sales will generate a consistent cash flow of $239 000 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 $460,000 at Year O.Cash flow at Year 1 is S130i000 In each subsequent year, cash flow Will grow at 10 percent per year.lntroduction of new at Year 6 will terminate further cash flows from this project.
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