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%. ?
A) Yes, the rounded NPV is $228, 940.00 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%.
Correct Answer:
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