Help on decision analysis question
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 OUR PROCESSOrderPaymentWritingDeliveryWhy Choose Us: Cost-efficiency, Plagiarism free, Money Back Guarantee, On-time Delivery, Total Сonfidentiality, 24/7 Support, 100% originality |
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 |