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that's the whole question Question 1 Your total investment in developing a new 3D-printing software is estimated to be $150,000. If you decide to market
that's the whole question
Question 1 Your total investment in developing a new 3D-printing software is estimated to be $150,000. If you decide to market the software yourself, you estimate your first-year net cash flow to be $100,000. Because of rapid development and market competition in this technology your product life will be about 4 years, and the product's market share will decrease by 25% each year compared to the previous year's share. A big software company approaches you to buy the right to manufacture and distribute the product. a) Represent the economic analysis on a cash flow diagram. (2 marks) b) For what minimum price would you be willing to sell the software if a 15% interest rate applies? Explain (8marks)Step by Step Solution
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