# Help on decision analysis question

Nov 1st, 2015
Anonymous
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Price: \$10 USD

Question description

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.

 Year Revenue Capital Expenditures 2011 - \$16,000,000 2012 \$2,000,000 2013 \$5,000,000 2014 \$6,500,000 2015 \$7,500,000 \$5,500,000 2016 \$8,000,000 2017 \$8,000,000 \$1,500,000 2018 \$8,500,000 2019 \$9,000,000 \$3,000,000 2020 \$9,500,000

School: Carnegie Mellon University

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