The Quick-Start Company has the following pattern of potential cash flows with its planned investment in a new cold weather starting system for fuel injected cars. If the company has a discount rate of 17%,should it decide to invest?
A) yes,NPV = €2.2 million
B) yes,NPV = €21.6 million
C) no,NPV = -€1.9 million
D) yes,NPV = € 8.6 million
E) No,since more than one branch is NPV = 0 or negative,the firm must reject.
Correct Answer:
Verified
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