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QUESTION 36 Your company has invested $5 million in R&D on self-driving car technology. As a consequence of the investment, you acquired a patent on

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QUESTION 36 Your company has invested $5 million in R&D on self-driving car technology. As a consequence of the investment, you acquired a patent on the technology. GM is interested in buying the patent at $7 million. Instead, you decide to use existing idle facility to manufacture self-driving cars based on the technology. The facility is fully depreciated and has a book value of S0. The market value of the facility is $3 million. It will cost $2 million to re-furbish the facility to start production. What is the initial cash flow of the self-driving car manufacturing project at year 0? A. $2 million cash outflow B. $5 million cash outflow C. $9 million cash outflow D. $12 million cash outflow E. $17 million cash outflow

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