Calculate the NPV

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Reference no: EM133073827

Question - Mondelez, a manufacturer of confectionery products under the Cadbury trademark, plans to launch a range of premium chocolate boxes under the brand name 'Gazelle'. These boxes will be sold only in special chocolate boutiques set up in malls and hotels. Manufacturing and packaging the product would require special units, and thus, this would be an expensive investment. Also, Mondelez plans to support the launch of Gazelle with a high decibel marketing campaign.

The brand manager of Gazelle projects the following cash flows for the first five years (all figures in lakh):

Year

1

2

3

4

5

Cash Outflow

100

80

50

20

20

Cash Inflow

30

50

100

120

150

Assume that there are no expenses in Year 0.

Required - Calculate the NPV?

Reference no: EM133073827

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