A. What is the NPV of the following cash flows if the required rate of return...

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Finance

A. What is the NPV of the following cash flows if the requiredrate of return is 0.05?

Year 0 1 2 3 4

CF -13868 2129 2503 694 3244   

Enter the answer with 2 decimals (e.g. 1000.23).

B. Winnebagel Corp. currently sells 39298 motor homes per yearat $59840 each, and 17359 luxury motor coaches per year at $116566each. The company wants to introduce a new portable camper to fillout its product line; it hopes to sell 16596 of these campers peryear at $16773 each. An independent consultant has determined thatif Winnebagel introduces the new campers, it should boost the salesof its existing motor homes by 4933 units per year, and reduce thesales of its motor coaches by 1743 units per year. What is theamount to use as the annual sales figure when evaluating thisproject?

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A. What is the NPV of the following cash flows if the requiredrate of return is 0.05?Year 0 1 2 3 4CF -13868 2129 2503 694 3244   Enter the answer with 2 decimals (e.g. 1000.23).B. Winnebagel Corp. currently sells 39298 motor homes per yearat $59840 each, and 17359 luxury motor coaches per year at $116566each. The company wants to introduce a new portable camper to fillout its product line; it hopes to sell 16596 of these campers peryear at $16773 each. An independent consultant has determined thatif Winnebagel introduces the new campers, it should boost the salesof its existing motor homes by 4933 units per year, and reduce thesales of its motor coaches by 1743 units per year. What is theamount to use as the annual sales figure when evaluating thisproject?

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