Proceed with two new products

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Reference no: EM132018855

A company needs to decide if it will proceed with two new products. The two initiatives have the following cash flow projections: Project A: year 0 (-800,000), year1 (220,000), year 2 (265,000), year3 (292,000), year 4 (317,00). Project B: year0 (-650,000), years 1-5 (175,000). Project A= 11% rate of return. Project B= 11.5%rate of return. The company has a $1.5 million budget for to spend on projects for the year. Should the company move forward with one, both or neither of the two new products?

Reference no: EM132018855

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