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Another one of your responsibilities as CFO is to determine the suitability of new and current products. Your CEO has asked you to evaluate Android01. That task will require you to combine data from your production analysis from Project 2 with data from a consultant’s study that was done last year. Information provided by the consultant is as follows:
This concludes the information provided by the consultant.
You also have the following information:
Question 10: Calculate the expected cash flows from the Android01 project based on the information provided.
Question 11: Calculate the NPV for a required rate of return of 6.5 percent. Also calculate the IRR and the Payback Period.
Be sure to show your calculations in Excel and make recommendations for the benefit of the company.
yearcapital investment0-50123456789101112131415NPVIRRPayback period NWC-70 70 Revenue Expenses Salvage value00090909090909090105105105105105 -30-30-30-54…
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