Consider two mutually exclusive new product launch projects that Nagano Golf is considering. Assume the discount rate for both projects is 11 percent. Project A: Project B: Nagano NP-30. Professional clubs that will take an initial investment of $930,000 at Time 0. Introduction of new product at Year 6 will terminate further cash flows from this project. Nagano NX-20. High-end amateur clubs that will take an initial investment of $673,000 at Time O. Introduction of new product at Year 6 will terminate further cash flows from this project. Year NP-30 NX-20 O12345 0 -$930,000-$673,000 341,000 264,000 331,000 272,000 306,000 254,000 299,000 234,000 209,000 182,000 Complete the following table: (Do not round intermediate calculations. Enter the IRR as a percent. Round your profitability index (PI) answers to 3 decimal places, e.g., 32.161, and other answers to 2 decimal places, e.g., 32.16.) NPV IRR ΡΙ NP-30 % NX-20 %
Consider two mutually exclusive new product launch projects that Nagano Golf is considering. Assume the discount rate for both projects is 11 percent. Project A: Project B: Nagano NP-30. Professional clubs that will take an initial investment of $930,000 at Time 0. Introduction of new product at Year 6 will terminate further cash flows from this project. Nagano NX-20. High-end amateur clubs that will take an initial investment of $673,000 at Time O. Introduction of new product at Year 6 will terminate further cash flows from this project. Year NP-30 NX-20 O12345 0 -$930,000-$673,000 341,000 264,000 331,000 272,000 306,000 254,000 299,000 234,000 209,000 182,000 Complete the following table: (Do not round intermediate calculations. Enter the IRR as a percent. Round your profitability index (PI) answers to 3 decimal places, e.g., 32.161, and other answers to 2 decimal places, e.g., 32.16.) NPV IRR ΡΙ NP-30 % NX-20 %
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
Raghubhai
Transcribed Image Text:Consider two mutually exclusive new product launch projects that Nagano Golf is
considering. Assume the discount rate for both projects is 11 percent.
Project
A:
Project
B:
Nagano NP-30.
Professional clubs that will take an initial investment of $930,000 at Time 0.
Introduction of new product at Year 6 will terminate further cash flows from this
project.
Nagano NX-20.
High-end amateur clubs that will take an initial investment of $673,000 at Time
O. Introduction of new product at Year 6 will terminate further cash flows from
this project.
Year
NP-30
NX-20
O12345
0
-$930,000-$673,000
341,000
264,000
331,000
272,000
306,000
254,000
299,000
234,000
209,000
182,000
Complete the following table: (Do not round intermediate calculations. Enter the IRR as
a percent. Round your profitability index (PI) answers to 3 decimal places, e.g., 32.161,
and other answers to 2 decimal places, e.g., 32.16.)
NPV
IRR
ΡΙ
NP-30
%
NX-20
%
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