Question: Acme Co makes widgets. You have been asked to help Acme decide if they should start making gadgets. Please prepare a cash flow model of

Acme Co makes widgets. You have been asked to help Acme decide if they should start making gadgets.

Please prepare a cash flow model of the gadget project using the information below. Calculate the NPV with a discount rate of

10 %

and an IRR. Determine what the annual Sales Growth Rate would need to be for the NPV to be zero.

.

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Solution First lets start by defining the variables well need for the cash flow model C0 Initial investment in the gadget project widgets are currentl... View full answer

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