A company has five-year new product (Electric motorcycle) project will cost $50,000 to implement the project. It has a projected cash inflow of $15,000, $15,000, $20,000, $20,000, and $20,000 in the next five years and cash outflow of $5500 annually.

(a) If the required rate of return is 12 percent, determine the NPV and make decision to select or reject this project. ?

(b) What are non-financial criteria that should apply to a new electric motorcycle project for market in Indonesia, give at least 3 criteria and justify your answer ?

(c) what is the type of this project (strategic, operational or compliance) and explain the reason ?

Answer rating: 100% (QA)

Since the NPV is positive 1143790 the project should be selected because it is expected to generate ... View the full answer