Consider two mutually exclusive new product launch projects that Nagano Golf is considering. Assume the discount rate for both products is 15 percent.

Project A: Nagano NP-30.

Professional clubs that will take an initial investment of $660,000 at Time 0. Next five years (Years 1-5) of sales will generate a consistent cash flow of $222,000 per year. 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 $420,000 at Time 0.

Cash flow at Year 1 is $120,000. In each subsequent year cash flow will grow at 10 percent per year.

Introduction of new product at Year 6 will terminate further cash flows from this project.

Please fill in the following table:

Year NP.30 NX-20 0$660,00$420,00 222000 20,000 222000 132,000 2000 145,200 4222000 159,20 5 222,000 75,692 NP-30 NX-20 Implications Payback PI NPV