QUESTION $6$

A company is thinking about marketing a new product. Up$-$front costs to market and develop the product are $$13\mathrm{.}39$ Million. The product is expected to generate profits of $$1\mathrm{.}39$ million per year for $26$ years. The company will have to provide product support expected to cost $$341953$ per year in perpetuity. Furthermore, the company expects to invest $$38912$ per year for $11$ 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 $6\mathrm{.}26\%.$

NOTE: Answer in $$.$ If your answer is $220$M$,$ you must answer $220000000\mathrm{.}0000.$

HINT. Compute the present value of all cash flows and then combine them.