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please show me what formulas I need to use for the blue boxes to get the answers Innovation Company is thinking about marketing a new

please show me what formulas I need to use for the blue boxes to get the answers
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Innovation Company is thinking about marketing a new software product. Up-front costs to market and develop the product are $5 million. The product is expected to generate profits of $1 million per year for 10 years. The company will have to provide product support expected to cost $100,000 per year in perpetuity. Assume all profits and expenses occur at the end of the year. o un a. What is the NPV of this investment if the cost of capital is 6%? Should the firm undertake the project? Repeat the analysis for discount rates of 2% and 11%. b. How many IRRs does this investment opportunity have? c. Can the IRR rule be used to evaluate this investment? 9 Up-front costs Annual profits Number of periods (years) Product support costs 10 11 12 13 S 5,000,000 1,000,000 10 100,000 S a. What is the NPV of this investment if the cost of capital is 6%? Should the firm undertake the project? Repeat the analysis for discount rates of 2% and 11%. 14 15 16 17 18 19 Cost of capital (1) Cost of capital (2) Cost of capital (3) 6% 2% 11% 20 21 22 23 24 25 26 27 NPV (1) Take opportunity (Yes/No) NPV (2) Take opportunity (Yes/No) NPV (3) Take opportunity (Yes/No) b. How many IRRs does this investment opportunity have? Based on @) there are at least IRRS 28 29 30 31 32 33 34 c. Can the IRR rule be used to evaluate this investment? Trust the IRR rule (Yes/No) 35

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