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You are part of a team running a large project at an automotive company. The company is developing a new solar-powered car-based system with capabilities
You are part of a team running a large project at an automotive company. The company is developing a new solar-powered car-based system with capabilities has been designed for the past twenty years. The system is expected to be available for its final due diligence exactly four years from now. Over the previous twenty years, a total of IDR 550 million/year has been allocated for research and development needs. As the project manager, you are asked to calculate the feasibility of the value of this project. Assuming the IDR 550 million was spent in an equal amount every year with an interest rate of 10%. Based on the data given, calculate: 1. What is the total value of the investment now (after twenty years of development)? 2. What is the total value of the investment at the expected time of the last due diligence, assuming the exact amount is spent for each of the next four years. 3. Assuming that for each of the next four years, the total expenditure will double from the previous development period (twenty years earlier), how much is the total investment value until the last feasibility test is carried out. 4. Define all your calculation by showing the detailed cash flow information as the data given 5. If the research and development cost is reduced until half of the initial calculation, and assuming that all the situations are the same, what would be happened (explain it by giving your calculation result as well as the detail C/F)
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