Question: 1) Compute the net cash inflow (incremental contribution margin minus incremental xed expenses) anticipated from the sale ofthe NEDs for each year over the next

1) Compute the net cash inflow (incremental
1) Compute the net cash inflow (incremental contribution margin minus incremental xed expenses) anticipated from the sale ofthe NEDs for each year over the next six years. 2) Using the data computed in (1) above and other data provided in the problem, determine the net present value: internal rate of return, payback period and protability index of the proposed investment. 3) Using the analysis performed in #2, prepare a best and worst case scenario using the following assumptions: Best case: Projected sales expectations increase by l %= required rate of return falls to T"%. Worst case: Projected sales decrease by 10%= required rate of return increases to 15%. 4) Write amemo to the CFO of [3C providing your analysis and recommendation regarding the NEDs. Be sure to compare your results to the competing proposal. Be sure to include a strong recommendation for or against the acceptance of the new NEDs into EEC 's product line

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