X Company is planning to launch a new product. A market research study, costing $150,000, was conducted last year, indicating that the product will be successful for the next four years. Profits from sales of the product are expected to be $156.000 in each of the first two years and $104,000 in each of the last two years. The company plans to undertake an immediate advertising campaign that will cost $93,000. New manufacturing equipment will have to be purchased for $310,000; Communication Blocked alue at the end of the four years. Assuming a discount rate of 6%, what is the net present value of launching the new product? Present Value of $1.00 Period 1 2 3 [ 4 3% 4% 5% 6% 7% 8% 9% 10% 11% 12% 0.971 0.962 0.952 0.943 0.935 0.926 0.917 0.909 0.901 0.893 0.943 0.925 0.907 0.890 0.873 0.857 0.842 0.826 0.812 0.797 0.915 0.889 0.864 0.840 0.816 0.794 0.772 0.751 0.731 0.712 0.888 0.855 0.823 0.792 0.763 0.735 0.708 0.683 0.659 0.636 0.863 0.822 0.784 0.747 0.713 0.681 0.650 0.621 0.593 0.567 0.837 0.790 0.746 0.705 0.666 0.630 0.596 0.564 0.535 0.507 0.813 0.760 0.711 0.665 0.623 0.583 0.547 0.513 0.482 0.452 0.789 0.731 0.677 0.627 0.582 0.540 0.502 0.467 0.434 0.404 6 | 8 Present Value of an Annuity of $1.00 WN Period 3% 4% 1 0.971 0.962 2 1.913 1.886 2.829 2.775 3.717 3.630 5 | 4.580 4.452 6 5.417 5.242 6.230 6.002 8 7.020 6.733 5% 6% 7% 0.952 0.943 0.935 1.859 1.833 1.808 2.723 2.673 2.624 3.546 3.465 3.387 4.329 4.212 4.100 5.076 4.917 4.767 5.786 5.582 5.389 6.463 6.210 5.971 8% 9% 10% 11% 12% 0.926 0.917 0.909 0.901 0.893 1.783 1.759 1.736 1.713 1.690 2.577 2.531 2.487 2.444 2.402 3.312 3.240 3.170 3.102 3.037 3.993 3.890 3.791 3.696 3.605 4.623 4.486 4.355 4.231 4.111 5.206 5.033 4.868 4.712 4.564 5.747 5.535 5.335 5.146 4.968