Answer To: Questions 1 and 2 are based on the following scenario: Neptune Biometrics, despite its promising...
Harshit answered on May 14 2021
Question 1
Year
Cash flows
0
-550,00,000
1
10,00,000
2
10,00,000
3
10,00,000
4
10,00,000
5
10,00,000
NPV
-510,07,289.96
NPV = PV of Inflow – PV of Outflow
= PVIF (1000000,8%,5years) – 55,000,000
= 3992710 – 55000000
= - $51,007,289.96
Question 2
NPV is the marketing campaign is not undertaken
Year
Cash flows
0
-550,00,000
1
-150,00,000
2
-150,00,000
3
-150,00,000
4
...