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Management Studies

Southern California Publishing Company is trying to decide whether or not to revise its popular textbook, Financial Psychoanalysis Made Simple. They have estimated that the revision will cost $40,000. Cash flows from increased sales will be $10,000 the first year. These cash flows will increase by 7 percent per year. The book will go out of print five years from now. Assume the initial cost is paid now and all revenues are received at the end of each year. If the company requires a 10 percent return for such an investment, should it undertake the revision?

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Business Management, Management Studies

Category:- Business Management
Reference No.:- M9108242

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