A company has the following projects available for pursuit at this time. ,,Project A ,Launch a new product. This product will have the following projected costs and sales: ,Costs ,Research and Development $400,000 ,Marketing Costs $500,000 ,Modify Assembly Lines $100,000 ,Projected Revenues ,Year 1 and 2 $750,000 ,Year 3 and 4 $250,000 ,,Project B ,Expand factory space. This project will have the following costs and income: ,Costs ,Construction $1,000,000 ,Income ,Increased Sales, Year 1-5 $300,000 ,,Project C ,Rebuild a current product. This project will have the following costs and income: ,Research and Development $150,000 ,Marketing Costs $500,000 ,Modify Assembly Lines $50,000 ,Projected Revenues ,Year 1 and 2 $400,000 ,Year 3 and 4 $300,000 ,,Note that since project A and Project C both use the marketing team, they can not be pursued simultaneously. Project B is non-exclusive. ,Also note that the firm’s WACC is 17%. ,, A What is the NPV for Project A, B, and C?, B What is the MIRR for Project A, B, and C?, C What course of action would you recommend for this company?,
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