Tango Business Solutions is considering a new product to supplement its range line. It is anticipate that the new product line will cost $500,000 at time 0. Its cash in flow of $1.1million is expected in year1; $250,000 in year 2 ,$300,000 in year 3, $350,000 in year 4,and $400,000 each year thereafter throughyear10. Although the product line might be viable after year10, the company prefers to be conservative and end all calculations at that time.

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New product should be made if net present value is positive Net present value Present value of ... View the full answer