Based upon the following cash flows, should Ooey Gooey Candy Makers introduce a new product, Skinny Minnie Diet Cuisine? The initial investment is $780,000, and the cost of capital is 12.2%. ?
A) Yes, the NPV is $288,410.60 and the IRR is 38.2%.
B) Yes, the NPV is $175,478.98 and the IRR is 20.42%.
C) No, the NPV is -$211,589.40 and the IRR is 3.24%.
D) No, the NPV is -$75,375.18 and the IRR is 11.75%.
Correct Answer:
Verified
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