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11) Microsoft Corporation decides to invest in developing a robot that will help the elderly with tasks such as putting on socks, eating, etc. The

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11) Microsoft Corporation decides to invest in developing a robot that will help the elderly with tasks such as putting on socks, eating, etc. The initial investment for this project is $52,000,000 (52M). The cash flows expected from this investment are 16 million in year 1, 17 million in year 2, 19 million in year 3 and 21 million in year 4. To finance this project, Microsoft will issue $52,000,000 in bonds that pay 8% interest. What is the Net Present Value of this project? Should you take the project? 12) As an alternative to the situation in question 11, Microsoft can buy ROBO INC., a company that has posted an Internal Rate of Return of 15% annually for the past 5 years. Should Microsoft develop the robot itself or should they buy ROBO INC., instead? YOU MUST SHOW ALL WORK TO GET FULL CREDIT

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