Q12) Widget production and sales take place over a one-year cycle. For simplicity, assume that all costs (revenues) are paid (received) at the end of the one-year cycle. Assume that the risk-free return is 12% per year. A factory with a life of three years (from today) has a capacity to produce 1 million widgets each year (which are to be sold at the end of each year of production). Widgets produced within the last year have just been sold.What is the future value of the factory at the end of Year 2 after the cost of widget production goes down 50% in the second year? Note that the question mentions that in the first year, cost of widget production is at $2 per widget with certainty