Now | 1 | 2 | 3 | 4 | |
Manufacturing Equipment | -400000 | ||||
Advertising | -94000 | ||||
Annual Profits | 165000 | 165000 | 116000 | 116000 | |
Total cash flows | -494000 | 165000 | 165000 | 116000 | 116000 |
X PV factor 5% | 1 | 0.952 | 0.907 | 0.864 | 0.823 |
Present value of cash flows | -494000 | 157080 | 149655 | 100224 | 95468 |
Net Present value | 8427 | ||||
Option E $8,427 is correct |
8pt X Company is planning to launch a new product. A market research study, costing $200,000,...
LP Company is planning to launch a new product. A market research study, costing $130,000, was conducted last year, indicating that the product will be successful for the n to be 173,000 in each of the first two years and S111000 in each of the last two years. The company plans to undertak an immediate advertising campaign that will cost $82,000. Nev using campaign that will cost $82,000. New manufacturing equipment will have to be purchased for have zero disposal...
8 pt 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 $152.000 in each of the first two years and $106,000 in each of the last two years. The company plans to undertake an immediate advertising campaign that will cost $83.000 New manufacturing equipment will have to be...
8 pt X Company is planning to launch a new product. A market research study, costing $190,000, was con year, indicating that the product will be successful for the next four years. Profits from sales of the product a to be $163,000 in each of the first two years and $106,000 in each of the last two years. The company plans t an immediate advertising campaign that will cost $91,000. New manufacturing equipment will have to be p $360,000; it...
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 $154,000 in each of
the first two years and $100,000 in each of the last two years. The
company plans to undertake an immediate advertising campaign that
will cost $87,000. New manufacturing equipment will have to be
purchased for...
X Company is planning to launch a new product. A market research study, costing $120,000, 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 $164,000 in each of the first two years and $101,000 in each of the last two years. The company plans to undertake an immediate advertising campaign that will cost $76,000. New manufacturing equipment will have to be purchased for...
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 $163,000 in each of the first two years and $ 105,000 in each of the last two years. The company plans to undertake an immediate advertising campaign that will cost $77,000. New manufacturing equipment will have to be purchased...
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 $151,000 in each of the first two years and $107,000 in each of the last two years. The company plans to undertake an immediate advertising campaign that will cost $78,000. New manufacturing equipment will have to be purchased for...
X Company is planning to launch a new product. A market research study, costing $190,000, 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 $151,000 in each of the first two years and $117,000 in each of the last two years. The company plans to undertake an immediate advertising campaign that will cost $88,000. New manufacturing equipment will have to be purchased for...
X Company is planning to launch a new product. A market research study, costing $100,000, 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 $163,000 in each of the first two years and $103,000 in each of the last two years. The company plans to undertake an immediate advertising campaign that will cost $90,000. New manufacturing equipment will have to be purchased for...
X Company is planning to launch a new product. A market research study, costing $100,000, 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 $174,000 in each of the first two years and $120,000 in each of the last two years. The company plans to undertake an immediate advertising campaign that will cost $88,000. New manufacturing equipment will have to be purchased for...