You are the brand manager at a large confectionary company. You have been asked to complete an….
You are the brand manager at a large confectionary company. You have been asked to complete an analysis on a new product launch. The initial investment required for this new product is $100. The following cashflows have been projected by the marketing team, over the next four years.
|
Year 1 |
$50 |
|
Year 2 |
40 |
|
Year 3 |
40 |
|
Year 4 |
15 |
Your finance partner has told you that the company’s required rate of return is 15%. Calculate the Payback, the Discounted Payback, NPV and IRR for this new product launch.
In a brief paragraph, explain which methodology is the most effective and why? Would your thinking change if you were planning on changing roles within your company in the next 2-3years.
You are the brand manager at a large confectionary company. You have been asked to complete an…
