QUESTION 30 You are the CEO of Dunkin Donuts and are considering whether to invest in the development of a new product. Your staff advises you that the initial investment cost of introducing Cronuts (croissant-donuts) to sell in stores is $100 million dollars and the product will generate positive cash flows of $50 million per year for the next 3 years. The appropriate discount rate for this project is 1596. Suppose that you spent $2 million dollars on a marketing survey two months ago. Your staff used information in the marketing survey to determine the estimated cash flows given above. Suppose that you are now the CEO of Dunkin Donuts and are using discounted cash flow analysis to determine whether or not to invest in the Cronut project. What is the NPV of the project? (5 points) O 10.16 O 12.16 O 14.16 O 48 O 50 QUESTION 31 Bob's Flower Delivery is considering two mutually exclusive projects with the following cash flows. Project A is delivering cactuses, while project B is delivering sunflowers. What is the crossover rate of two projects? (5 points) Project B -$135,000 $50,000 $90,000 Period Project A 0 $125,000 1 $46,000 2 $79,000 3 $51,000 O It does not exist. O 14.0096 O 21.7696 O 18.8696 O 51.66% $60,000