Riggs Corp. management is planning to spend $650,000 on a new
- Riggs Corp. management is planning to spend $650,000 on a new marketing campaign. They believe that this action will result in additional cash flows of $331,145 over the next three years. If the discount rate is 17.5 percent, what is the NPV on this project? 2.Crescent Industries management is planning to replace some existing machinery in its plant. The cost of the new equipment and the resulting cash flows are shown in the accompanying table. If the firm uses an 18 percent discount rate for project. Year Cash Flow 0 -$3,212,220 1 $851,145 2 $1,051,539 3 $1,250,455 4 $1,191,505 5 $1,643,1 View complete question » 1.Riggs Corp. management is planning to spend $650,000 on a new marketing campaign. They believe that this action will result in additional cash flows of $331,145 over the next three years. If the discount rate is 17.5 percent, what is the NPV on this project? 2.Crescent Industries management is planning to replace some existing machinery in its plant. The cost of the new equipment and the resulting cash flows are shown in the accompanying table. If the firm uses an 18 percent discount rate for project. Year Cash Flow 0 -$3,212,220 1 $851,145 2 $1,051,539 3 $1,250,455 4 $1,191,505 5 $1,643,155 What is the NPV of this project? (Enter negative amounts using negative sign e.g. -45.25. Round answer to 2 decimal places, e.g. 15.25.) The NPV is $ Should management go ahead with the project? The firm should____________ the project. Additional Requirements Level of Detail: Show all work
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