Electronics Company paid $ $10$ million in cash $4$ years ago to acquire a company that manufactures$$ CD$-$ROM drives. This company has been operated as a division of Northlake and has lost $ $500$ comma $000$ each year since its acquisition. The minimum desired return for this division is$$ that, when a new product is fully$$ developed, it should return a net profit of $ $500$ comma $000$ per year for the foreseeable future.$$ Recently, the SRB Corporation offered to purchase the division from Northlake for $$$$2$ million. The president of Northlake $$commented$,$ "I've got an investment of $ $12$ million to recoup $($$ $10$ million plus losses of $ $500$ comma $000$ for each of $4$years$).$ I have finally got this situation turned$$ around, so I oppose selling the division$$ now."

Requirement

$1.$

Prepare a response to the$$ president's remarks. Indicate how to make this decision. Be as specific as possible