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An R&D project for a new product has already required the expenditure of $200K. Spending another $100K for a license on another rm's patent will
An R&D project for a new product has already required the expenditure of $200K. Spending another $100K for a license on another rm's patent will com- plete the project. Net returns from the product will be $20K per year for 10 years. If the rm's i is 10%, what is the PW for continuing? Should the rm continue? Using spreadsheet. Set up table with known values and use the Excel Present Value function (PW. . Using spreadsheet. Set up table with yearly cash ows and use the Excel Net Present Value function (NPV). Why is the $200K not included in the analysis
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