Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. 1 what is the npv for the following project given

1 What is the NPV for the following project given the information provided below? Would...

80.2K

Verified Solution

Question

Accounting

image
1 What is the NPV for the following project given the information provided below? Would you recommend conducting this project? Describe why you would or would not recommend conducting this project. NOTE: Show Your Calculations Five year product development from January 2022 through December 2026 $1,000,000 spent by the sponsoring company per year, each year for five years, to develop the product prior to regulatory approval and first commercial sale 0 Probabilities of Technical and Regulatory Success: I Year! Year 2 Year 3 Year 4 Year 5 1.10 30 50 80 90 a First product sale is forecast to occur in 2028 0 10 year P&L forecast is as follows: (000's) 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 Sales $1,000 $2,000 $3,000 $4,000 $5,000 $7,000 $7,000 $5,000 $3,000 $2,000 Costs $1,000 $1,500 $2,000 $3,000 $4,000 $5,000 $4,500 $4,000 $3,500 $2,000 Success 95 90 .85 .80 .70 .65 .60 .55 .50 .50 Probability Cost of Capital: 7%

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Psychology
1.2K views

I need a cause and effect essay , free topic and 5 paragraph.

Mechanical Engineering
1.2K views

A gas refrigeration cycle with a pressure ratio of 4.3 uses helium as the working fluid....

Physics
1.2K views

no Hare Ma 1 nuol sin TC n COS I fed TC n I 2...

Basic Math
1.2K views

Where is the function defined by f(x)= In (x) increasing? Where is f(x) decreasing? Where...

Statistics
1.2K views

7 A teacher believes that 80 of students in the class will want to go...

Calculus
1.2K views

veyor measurements found below Find the distance across the lake Round your answer to the...

Accounting
1.2K views

12. Pioneer of Human Relations is A. O Mary Parkett B. O Lillian Gilberth C....

Accounting
1.2K views

Which of the following statements is true? A.Payroll Tax Expense increases on the credit...

Accounting
1.2K views

What are some facts and what is the procedure history for Tax Court case TC...

Accounting
1.2K views

1. What is the difference between fraud and an innocent error? 2....

Finance
1.2K views

Comparing the Neoclassical and Behavioral Views. Do you find the behavioral view of consumer protection...

Finance
1.2K views

Please answer the Part 3 and fill the green cell with excel formula. ...