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Development costs of a new product are estimated to be $75,000 per year for three years. Annual profits from the sale of the new product,

Development costs of a new product are estimated to be $75,000 per year for three years. Annual profits from the sale of the new product, estimated to be $100,000, will begin in the fifth year and each year they will increase by ($20,000) through year 15). Using a rate of return of 20%, compute the present value. Draw a cashflow diagram

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