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under a special licensing Under a special licensing arrangement. Swinyard Company has an opportunity tomarket a new product for a 5 year period. The product

under a special licensing
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Under a special licensing arrangement. Swinyard Company has an opportunity tomarket a new product for a 5 year period. The product would be purchased from themanufacturer and Swinyard would be responsible for promotion and distribution costs, cost of equipment needed $60,000 working capital needed (released at the end of the project) $100,000 overhaul of equipment in year 4 $5,000 salvage value of equipment at the end of 5 years$ 10,000 annual revenues and costs sales revenues $200,000 cost of goods sold $125,000 other operating costs $35,000 At the end of the 5 year period, the working capital would be released for investment elsewhere. Swinyard uses a 12% discount rate. Ignore taxes and depreciation. Calculate the NPV of the investment. Please show your calculations. Should Swinyard proceed with the investment based on your analysis

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