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The Nu-Tech Company Has a New Project Available to It

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The Nu-Tech Company has a new project available to it at a cost of $6 million. The project that they can sell 13,000 personal organizers at $172 in net cash flow for each of the next five years. Nu-Tech's discount rate is 15%. What is the NPV of the investment? The executives of Nu-Tech are concerned about the potential of future competition and a subsequent drop in sales and price. If after two year you can dispose of the asset for 1.0 million at what price would it make sense to abandon the project?


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