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please help explain so i can do it myself 10 po QUESTION 8 A company is thinking about marketing a new product. Up-front costs to
please help explain so i can do it myself
10 po QUESTION 8 A company is thinking about marketing a new product. Up-front costs to market and develop the product are $12.97 Million. The product is expected to generate profits of $1.4 million per year for 26 years. The company will have to provide product support expected to cost $340,494 per year in perpetuity. Furthermore, the company expects to invest $36,882 per year for 14 years for renovations on the product. This investing would start at the end of year 7. Assume all profits and expenses occur at the end of the year. Calculate the NPV of this project if the interest rate is 6.45% Step by Step Solution
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