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A company is thinking about marketing a new product. Up-front costs to market and develop the product are $14.35 Million. The product is expected to
A company is thinking about marketing a new product. Up-front costs to market and develop the product are $14.35 Million. The product is expected to generate profits of $2.13 million per year for 29 years. The company will have to provide product support expected to cost $239627 per year in perpetuity. Furthermore, the company expects to invest $49366 per year for 14 years for renovations on the product. This investing would start at the end of year 6 . Assume all profits and expenses occur at the end of the year. Calculate the NPV of this project if the interest rate is 6.79%. NOTE: Answer in \$. If your answer is 220M, you must answer 220000000000 . HINT. Compute the present value of all cash flows and then combine them
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