ACB Company is deciding whether to launch a new product. The initial outlay and the forecast possible annual cash inflows are shown below: Year 0 (60,000) Year 1 23,350 Year 2 29,100 Year 3 27,800 The company's cost of capital is 8% per annum. Assume the cash inflows are received at the end of the year and that the cash inflows for each year are independent. What is the expected net present value to the nearest $ for the product?

Answer rating: 100% (QA)

To calculate the expected net present value NPV of the new product we need to discount the forecaste... View the full answer