Allied uses a twenty percent discount rate for new product


Allied Products is contemplating a new product launch. The Vice President of marketing suggest that allied Products can sell 2 million units per year at a net after tax cash flow of $100 per unit for the next ten years. Allied uses a twenty percent discount rate for new product launches and the required initial investment is $100 million. What is this base case Net Present Value?

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Finance Basics: Allied uses a twenty percent discount rate for new product
Reference No:- TGS0606096

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