Nautilus Company is going to make an investment of $700,000 in a machine and the following are the cash flows that two different products would bring in years one through four. The company's required rate of return is 12%.
$225,000
$195,000
$295,000
$245,000
Using the appropriate EXCEL spreadsheet in the Chapter11 NPV IRR Analysis.xlsx download, answer the following questions:
PLEASE NOTE #1: The dollar amounts will be with "$" and commas as needed and rounded to two decimal places (i.e. $12,345.67). Round your IRR answers, in percentage format, to two decimal places (i.e. 12.34%).
5. Given the above answers, which project should the company invest in? Project .
PLEASE NOTE #2: Your answer is either "A" or "B" - capital letter, no quotes.
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