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The UBA Corporation is considering doveloping a new product. If undertaken, the project requires the outlay of ( $ 100,000 ) per year for three
The UBA Corporation is considering doveloping a new product. If undertaken, the project requires the outlay of \\( \\$ 100,000 \\) per year for three years. Net returns beginning in Year 4 are estimated at \\( \\$ 65,000 \\) per year for twolve years. The residusi value of the outlays after fifteen years is \\( \\$ 30,000 \\). The corporation requires a retum on investment of \14 on similar projects. a) Calculate the NPV of the prolect. b) Calculate the ROI of the project. c) Determine the paytrack period of the projsct. d) Which you go ahead with the project? Whywity not? 4) A feasbility study concerning a contemplated venture yelded the following estimates: Color The required retum on investment is \15. More settir a) Calculate the NPV of the project. b) Calculate the ROI of the project. c) Deternine the payback period of the project. d) Which you go ahead with the project? Whywhy not
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