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Question 4 (5 points) A company has to invest $8 million to buy the copyright of a design to manufacture a kitchen gadget. With a

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Question 4 (5 points) A company has to invest $8 million to buy the copyright of a design to manufacture a kitchen gadget. With a light number of sales, the company can expect a return of $1.3 million each year for three years. With a moderate number of sales, the return will be $2.5 million each year for four years and with a high number of sales, a return of $4 million each year for four years. The probability of a high sale number has been estimated to be 0.4 and 0.2 for the probability of light sales. The company uses an interest rate of 15%. Calculate the expected present worth of the investment. On this basis, should the company make the investment or not? Do not forget to submit your work on dropbox. Fill the boxes exactly as the following order: 1. PW of Light sales (No $ sign) 2. PW of Moderate sales (No $ sign) 3. PW of High sales (No $ sign) 4. EPW (No $ sign) 5. 'Yes' or 'No'? A/

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