Answer Happy

HS is considering two mutually exclusive new product initiatives - Diet Soda and Wellness juice: year 0 Cash Flow (diet soda) $3,437,500.0 $1,250,000.0 $1,562,500.0 $1,875,000.0 Cash flow (vegetable juice) -$3,437,500.0 $312,500.0 $1,875,000.0 1 2. 3 $1,562,500.0 $312,500.0 $1,562,500.0

the required rate of return is 10%, what is the NPV of these two product plans? If HS Company adopts the NPV method, which plan should the company accept? (10 points) b. What is the IRR for the two product plans? If HS Company adopts the IRR method, which plan should the company accept? Is it the same as in (a)? Please explain (12 points) addition to the NPV and IRR methods, what other methods can HS use to analyze the capital budgets of the above two programs? Please briefly explain (8 points)