For which discount rates is the project attractive

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Reference no: EM131532349

Your firm is considering the launch of a new product, the XJ5. The upfront development cost is $10 million, and you expect to earn a cash flow of $2.9 million per year for the next 5 years. Create a table for the NPV profile for this project for discount rates ranging from 0% to 30% (in intervals of 5 %).

For which discount rates is the project attractive?

Should include this from 0-30%:

The NPV for a discount rate of 0% is $ __ million

Thus, at a discount rate of 0 %, this project is attractive or not attractive

Reference no: EM131532349

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