Solution-Calculate the npv of project

Calculate the npv of project

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Reference no: EM133275052

A company is thinking about marketing a new product, upfront costs to market and develop the product are 22 million. The product is expected to generate profits of 27 million per year for 13 years. The company will have to provide product support expected to cost 6 million per year in perpetuity. Furthermore the company expects to invest 6 million per year for 11 years for renovations on the product. This investing would start at the end of year 9. Assume all profits and expenses occur at the end of the year. Calculate the NPV of this project if the interest rate is 13%

Reference no: EM133275052

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Calculate the npv of project

Reference no: EM133275052

Reference no: EM133275052

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