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You are part of a team running a large project at an automotive company. The company is currently developing a new solar-powered car-based system with

You are part of a team running a large project at an automotive company. The company is currently developing a new solar-powered car-based system with capabilities that have been designed for the last twenty years. The system is expected to be available for its final due diligence exactly four years from now. During the previous twenty years, a total of IDR 550 million annually has been allocated for research and development needs. As a project manager, you are asked to calculate the worthiness of this project. Assuming Rp 550 million is spent in the same amount every year with an interest rate of 10%. Based on the data given, calculate: a. What is the total value of the investment now (after twenty years of development)? b. What is the total value of the investment at the expected time of the last due diligence, assuming the same amount of spend for each of the next four years. c. Assuming that every four years the total expenditure will be doubled from the previous development period (twenty years earlier), what is the total investment value until the last feasibility test is carried out. d. Determine all your calculations by showing detailed cash flow information according to the data provided e. If research and development costs are reduced to half of the original calculation, and assuming that all other components are equal, what will happen (explain by providing your calculation results and C/F details)

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