The following data have been collected by capital budgeting analysts at Erica, Inc. concerning a new product line currently under consideration by management:
(a.) Calculate the net present value of the proposed investment in the new product line. Ignore income taxes, and round all answers to the nearest $1.(b.) What will the internal rate of return on this investment be relative to the cost of capital? Explain your answer.

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The Answer of The following data have been collected by capital budgeting analysts at Erica, Inc. concerning a new product line currently under consideration by management:
(a.) Calculate the net present value of the proposed investment in the new product line. Ignore income taxes, and round all answers to the nearest $1.(b.) What will the internal rate of return on this investment be relative to the cost of capital? Explain your answer.

The Following Data Have Been Collected by Capital Budgeting Analysts