Question: 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:

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 $730,000 at Year O. For each of the next 5 years, (Years 1-5), sales will generate a consistent cash flow of $330,000 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 $940,000 at Year 0. Cash flow at Year 1 is $280,000. 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. Year o 1 2 3 4 5 NP-30 NX-20 730,000 940,000 330,000 280,000 330,000 308,000 330,000 338,800 330,000 372,680 330,000 409,948 Complete the following table: (Do not round intermediate calculations. Round your "PI" answers to 3 decimal places, e.g., 32.161, and other answers to 2 decimal places, e.g., 32.16. Enter your IRR answers as a percent.) NP-30 NX-20 Payback years % years % IRR PI NPV
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