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5) Berringer International Inc. has invested $21 million and launched its new product. The company projected sales of over the next 10 years of $600,000,

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5) Berringer International Inc. has invested $21 million and launched its new product. The company projected sales of over the next 10 years of $600,000, $3.1 million, $6.5 million, and $7.5 million for the first four years and $11 million for the next 6 years. A capital injection of 4 million will be required in Years 5 and 7 and a residual value of $4.5 million is expected at the end. If Berringer expects a return of 10%, what is the net present value of this project? (12 marks)

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