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You are the financial manager for a firm and the product development team has proposed the development of a software product that will cost $1,000,000
You are the financial manager for a firm and the product development team has proposed the development of a software product that will cost $1,000,000 currently to produce but will bring in cashflows of $250,000 for the next 5 years. Alternatively, the firm can invest those funds in the stock market and earn 8% over the same period. a. Set up a timeline depicting this stream of cashflows. b. Should you greenlight the development of the new product or not?
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