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X Company is planning to launch a new product. A market research study, costing $150,000, was conducted last year, indicating

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Answer #1
Now 1 2 3 4
Manufacturing Equipment -390000
Advertising -77000
Annual Profits 163000 163000 105000 105000
Total cash flows -467000 163000 163000 105000 105000
X PV factor 7% 1 0.935 0.873 0.816 0.763
Present value of cash flows -467000 152405 142299 85680 80115
Net Present value -6501
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