Business, 22.11.2019 20:31 smarty5187

Xcompany 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 $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 $85,000. new manufacturing equipment will have to be purchased for $370,000; it will have zero disposal value at the end of the four years. assuming a discount rate of 5%, what is the net present value of launching the new product?

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