Problem 9.29 – Aria Acoustics, Inc. Calculating NPV and IRR for a New Product Launch
Essentials of Corporate Finance
Ross, Westerfield, and Jordan
10th Edition and 11th Edition
Given a large paragraph of information and 5 years’ worth of sales, determine the NPV and IRR of the production of the implants. Calculate the NPV and IRR for a new product launch based on projected unit sales, fixed and variable costs, equipment costs, tax rate, and required return. Use the provided MACRS schedule and assume the equipment can be sold for % of its acquisition cost at the end.
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