Question: P7. Please open file in announcement section in D2L with the name cashowexamZ and you will see the cash ow in excel for a brewery

P7. Please open file in announcement section in
P7. Please open file in announcement section in D2L with the name "cashowexamZ" and you will see the cash ow in excel for a brewery project. All probabilities of certainty are 100% but you are wondering if you should introduce a new product. You want to introduce a new beer that has never being sold in Montana and which has had a lot of success elsewhere. With this new product you expect to charge 20% more, and to reduce your direct competitors in half. However, your potential market is reduced by 30% as well because the taste of this beer is targeted to a smaller percentage of the population. Would you prefer the new project instead? Why? (HINT: If NPV new project>NPV old project then go with the new project)

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