4 Long term financial Management

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Title: 4 Long term financial Management
 
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Subject: Business
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Date: April 18, 1998
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Since our NPV is a positive number, I would recommend we proceed with the new product line. 3. Based on the findings in question 2, I definitely think the project should be accepted. We are to assume that Superior has a payback policy of not accepting projects with life of over three years...
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Our payback lifetime for this project is 2.98 years, therefore since we are under the maximum 3 years that are allowed the project should be accepted. We also know that the new project would have a positive NPV of $1,075,688. Therefore, we apply the rule of a positive NPV means a project should be accepted...
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