5.20 Gene Research, Inc., just finished a 4-year program of R&D and clinical trial. It ex- pects a quick approval from the Food and Drug Administration. If Gene markets 256 CHAPTER 5 Present-Worth Analysis the product its own, the company will require $30 million immediately (n = 0) to build a new manufacturing facility, and it is expected to have a 10-year product life. The R&D expenditure in the previous years and the anticipated revenues that the company can generate over the next 10 years are summarized as follows: Period (n) -4 Cash Flow (Unit: $ million) -$10 -10 -10 -3 -2 -1 -10 0 -10 - 30 1-10 100 Merck, a large drug company is interested in purchasing the R&D project and the right to commercialize the product from Gene Research, Inc.; it wants to do so immediately (n = 0). What would be a starting negotiating price for the project from Merck? Assume that Gene's MARR = 20%