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Webster's wants to introduce a new product that has a start-up cost of $7,800. The product has a 2-year life and will provide cash flows
Webster's wants to introduce a new product that has a start-up cost of $7,800. The product has a 2-year life and will provide cash flows of $6.700 in Year 1 and $4,300 in Year 2. The required rate of return is 14 percent. Should the product be introduced? Why or why not? Yes; the IRR is 12.97 percent. No; the IRR is 12.94 percent. O Yes: the NPV is $1.108.15. O Yes: the NPV is $1,409.27 O Yes; the IRR is 28.72 percent
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