What is possible rationale for the projected revenue stream

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Question - At the time of the product launch, P&G expects to have invested $4.2 million in a new laundry soap.

The projected revenue stream is

Year 1: $12 million,

Year 2: $28 million,

Year 3: $43 million,

Year 4: $18 million,

Year 5: $12 million

1. What is the NPV if the discount rate is 25% compounded annually?

2. Based on the numbers provided, what is a possible rationale for the projected revenue stream?

3. Suppose P&G is looking at another product with an NPV of $50 million. Which product should they select?

Reference no: EM132929434

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