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Based Upon the Following Cash Flows, Should Chipper Nipper Cookie

Question 85

Multiple Choice

Based upon the following cash flows, should Chipper Nipper Cookie Company introduce a new product, Rolling In Dough Pies? The initial investment is $180,000 and the cost of capital is 11.5%.
 Years  Cash F1aws 180,000295,000395,0004110,0005110,0006110,000\begin{array} { | l | c | } \hline \text { Years } & \text { Cash F1aws } \\\hline 1 & 80,000 \\\hline 2 & 95,000 \\\hline 3 & 95,000 \\\hline 4 & 110,000 \\\hline 5 & 110,000 \\\hline 6 & 110,000 \\\hline\end{array}


A) Yes, the rounded npv is $228, 940 and the irr is 46.62%
B) Yes, the rounded npv is $75,428.63 and the irr is 12.27%
C) No, the rounded npv is -$57,277.32 and the irr is 8.75%
D) No, the rounded npv is -$221,275.39 and the irr is 9.97%

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