The Quick-Start Company has the following pattern of potential cash flows for a new project. If the company has a discount rate of 17 percent,should it test the product? Why or why not?
A)Yes; NPV = −$48,632,106
B)Yes; NPV = $21,565,903
C)No; NPV = −$2,308,410
D)No; NPV = $36,515,028
E)Yes; NPV = $3,462,911

Question

The Quick-Start Company has the following pattern of potential cash flows for a new project.  If the company has a discount rate of 17 percent,should it test the product? Why or why not?
A)Yes; NPV = −$48,632,106 
B)Yes; NPV = $21,565,903 
C)No; NPV = −$2,308,410 
D)No; NPV = $36,515,028 
E)Yes; NPV = $3,462,911

Quizplus · Accepted Answer

The Answer of The Quick-Start Company has the following pattern of potential cash flows for a new project.  If the company has a discount rate of 17 percent,should it test the product? Why or why not?
A)Yes; NPV = −$48,632,106 
B)Yes; NPV = $21,565,903 
C)No; NPV = −$2,308,410 
D)No; NPV = $36,515,028 
E)Yes; NPV = $3,462,911

The Quick-Start Company Has the Following Pattern of Potential Cash