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Optimo ltd. Forecast the revenue stream from its new product, a protein snack, to be as follows: year 1: $60 million, year 2: $ 35
Optimo ltd. Forecast the revenue stream from its new product, a protein snack, to be as follows: year 1: $60 million, year 2: $ 35 million, year 3: $45 million, year 4 $20 million, and zero thereafter.
Expenses are expected to be 55% of revenue. The working capital requirements are 25% of revenue. Optimo needs an immediate investment of $50 million in plant expansion and new equipment.
What is the initial investment in the product?
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