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Question 2 (1 point) An invention costs an initial amount of $10 million to develop along with $3 million operating costs paid continuously throughout each
Question 2 (1 point) An invention costs an initial amount of $10 million to develop along with $3 million operating costs paid continuously throughout each year for the first five years. After the first five years, is anticipated that the invention will generate $4 million per year in perpetuity, received annually, with the first payment received at the beginning of the sixth year. Given an annual effective interest rate of 10%, calculate the net present value of the invention (in millions). a) -2.10 b) 2.90 c) 10.39 d) 5.39 e) 13.12
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