Consider two mutually exclusive new product launch projects that Nagano Golf is considering. Assume the discount rate for both projects is 12 percent.
Project A: Nagano NP-30
Professional clubs that will take an initial investment of $900,000 at time 0. Introduction of new product at year 6 will terminate further cash flows from this project.
Project B: Nagano NX-20
High-end amateur clubs that will take an initial investment of $650,000 at time 0. Introduction of new product at year 6will terminate further cash flows from this project. Here are the cash flows:

YEAR NP-30 NX-20 -$900,000 375,000 350,000 325,000 275,000 185,000 $650,000 250,000 250,000 300,000 250,000 165,000