Mallard Saws produces table saws for the do-it-yourself (DIY) market and has been very successful financially. Lew Mallard, CEO, is working with his executive team, Hew, Dew, Don, and Daisy, on new-product development decisions. The group is considering the possibility of designing and launching four new products, which have been tentatively named Bubba, Butch, Brutus, and Buddy. A team of analysts has generated the following information about each product, based on market and technical studies:
Market Life Cost to Develop Net Annual Income Expected
Bubba 5 years $1,000,000 $300,000
Butch 4 years $500,000 $200,000
Brutus 10 years $2,000,000 $560,000
Buddy 3 years $400,000 $150,000
Calculate net present value (NPV) for each potential project, assuming a discount rate of 18%. Use the present value table on the Announcement page. Discuss the results and make a recommendation. What other factors should be considered in the selection decision?
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.Read more
Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.Read more
Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.Read more
Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.Read more
By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.Read more