Panjandrum Industries, a manufacturer of industrial piping, is evaluating whether it should expand into the sale of plastic fittings for home garden sprinkler systems. It has made the above estimates of free cash flows resulting from such a decision (all quantities in millions of dollars) . It is thought that if marketing expenses are increased by 40%, then revenues will rise. By how much will revenues have to rise for the net present value (NPV) of the project to increase?

Question

Quizplus · Accepted Answer

B) 11eaabab_c099_e5ce_b90e_d531cd5dc637_TB5536_11 11eaabab_c099_e5cf_b90e_1599dc9705e5_TB5536_11 11eaabab_c09a_0ce0_b90e_97a4c6c78f5d_TB5536_11

Panjandrum Industries, a Manufacturer of Industrial Piping, Is Evaluating Whether