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Your firm is considering the launch of a new product. the XJ5. The upfront development cost is $12 million, and you expect to earn a
Your firm is considering the launch of a new product. the XJ5. The upfront development cost is $12 million, and you expect to earn a cash flow of $3.1 million per year for the next 5 years. Create a table for the NPV profile for this project for discount rates ranging from 0% to 30%, in intervals of 5%. For which discount rates is the project attractive?
The NPV for a discount rate of 0% is $ (million)
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