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

A. What is the NPV of the following cash flows if the required rate 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 year at $59840 each, and 17359 luxury motor coaches per year at $116566 each. The company wants to introduce a new portable camper to fill out its product line; it hopes to sell 16596 of these campers per year at $16773 each. An independent consultant has determined that if Winnebagel introduces the new campers, it should boost the sales of its existing motor homes by 4933 units per year, and reduce the sales of its motor coaches by 1743 units per year. What is the amount to use as the annual sales figure when evaluating this project?

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jeff jeffy answered 6 months ago

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