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Innovation Company is thinking about marketing a new software product. Upfront costs to market and develop the product are $4.69 million. The product is expected
Innovation Company is thinking about marketing a new software product. Upfront costs to market and develop the product are $4.69 million. The product is expected to generate profits of $1.05 million per year for ten years. The company will have to provide product support expected to cost $91,000 per year in perpetuity. Assume all profits and expenses occur at the end of the year. What is the NPV for discount rates of 13.7%?
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