Question: Should you undertake this new product line? Substantiate your answer using NPV. Year Estimated Cash Flow PB Company 0 $(560,000) D/E 0.45 1 $73,549 Beta

Should you undertake this new product line? Substantiate your answer using NPV.

Year

Estimated Cash Flow

PB Company

0

$(560,000)

D/E

0.45

1

$73,549

Beta

1.70

2

$118,650

Tax Rate

20%

3

$127,500

4

$133,420

J Company

5

$140,790

D/E

0.30

6

$148,635

Beta

1.58

Tax Rate

34%

ALL INFORMATION GIVEN

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