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Fu'ad Company purchased a broadcast license for $2,500,000. The license is valid for 10 years, whereafter it can be renewed at a minimal cost for

Fu'ad Company purchased a broadcast license for $2,500,000. The license is valid for 10 years, whereafter it can be renewed at a minimal cost for an indefinite number of 10-year periods if the company complies with the broadcasting rules. The company spends a further $85,000 on legal and registration fees and $400,000 for market research conducted internally.

What will the cost of the broadcasting license be?

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