Assignment $2$: Assessing the Viability of XYZ Tech's Strategic Investment: Imagine XYZ Tech, a dynamic player in the technology sector, is considering a pivotal investment opportunity to enhance its digital infrastructure. Your mission is to value the prospective venture.

Financial Overview of XYZ Tech $(2021)$:

$$ Revenue: $$18,000,000$

$$ Cost of Goods Sold $($COGS$)$: $$3,000,000$

$$ Gross Profit: $$15,000,000$

$$ Operating Expenses: $$4,500,000$

$$ Operating Income: $$7,500,000$

$$ Interest Expense: $$300,000$

$$ Net Income: $$7,200,000$

Cash Flows for the Investment Project $(2022-2026)$:

Year Cash inflows Cash outflows

$2022$ $$7,000,000$ $$4,800,000$

$2023$ $$7,300,000$ $$5,000,000$

$2024$ $$7,500,000$ $$6,900,000$

$2025$ $$6,500,000$ $$5,200,000$

$2026$ $$8,800,000$ $$7,200,000$

Discount Rates:

$$ Marketability Discount Rate: $21\mathrm{.}50\%$

$$ Regulatory Risk Discount: $11\mathrm{.}00\%$

$$ Global Market Dynamics Risk Discount: $10\mathrm{.}00\%$

$$ Strategic Partnership Risk Discount: $6\mathrm{.}00\%$

$$ Perpetuity Growth Rate: $5\mathrm{.}25\%$