Riggs corp is planning to spend 650000 on a new marketing

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Riggs Corp. is planning to spend $650,000 on a new marketing campaign. They believe that this will result in additional cash flows of $325,000 over the next three years.
If the firm uses a discount rate of 17.5 percent, what is the NPV on this project?


Kingston Inc. is looking to add a new machine at a cost of $4,133,250. The company expects this equipment will lead to cash flows of $814,322,
$863,275, $937,250, $1,017,112, $1,212,960, and $1,225,000 over the next six years.
If the appropriate discount rate is 15 percent, what is the NPV of this investment?


Franklin Mints, a confectioner, is looking to purchase a new jellybean-making machine at a cost of $312,500. The company projects that the cash flows from this investment will be $121,450 for the next seven years. If the appropriate discount rate is 14 percent,
what is the NPV for the project?

Reference no: EM13377375

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