Company XYZ has developed the concept of a new product, from preliminary budgetary estimate to final design ready for implementation. The development has required an initial investment at the beginning of the activity, which lasted six months before implementation and beginning of production. At completion of implementation and beginning of production the CEO wants to estimate the expected PV of the investment, he/she has the following data: Capital for development Development period Capital for Implementation Anticipated sales revenues $20,000 P1 = $30,000 0.5 years P2 $2,000,000 = Ar = $250,000/yr plus G r = Anticipated O&M cost A om- $25,000/yr plus G om = $2,000 Project Life 15 years Salvage Value F = 20% of invested capital Worth of Capital availability for the Company i= 7.35%