Author Question: The NPV of an initial investment of 1,500,000 with a 10 required rate of return over 10 years is ... (Read 124 times)

Deast7027 · **on:** Jul 6, 2018

The NPV of an initial investment of 1,500,000 with a 10 required rate of return over 10 years is calculated at 120,000. What should the company do?

A) Invest the NPV is greater than 0.
B) Not invest the NPV is less than the 10 stated.
C) Find a way to reduce the initial investment to 1,200,000 and still yield the same amount.
D) None of the above

Question 2

Which of the following is a cost associated with product platforms?

a. products created off a product platform are more distinctive
b. need less cross-functional coordination
c. lower-level products have to be over designed so they can share systems and components with higher-level prices
d. all of the above are costs associated with product platforms