2. You are the CEO of
Cardinal Company (a small handheld technology firm) and have just been briefed
on a promising new product with projected cash flows detailed below. Discuss your assessment of this project’s
viability and profitability. Explain the
principles of evaluating cash inflows and outflows. Calculate payback period,
total return on investment, internal rate of return, and net present
value. State any assumptions (i.e.
discount rate). Explain your reasoning
behind those assumptions.