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.

5. 3400PS2 - Word G X File Home Insert Design Layout References Mailings Review View ACROBAT Tell me what you want to do... Sign in 2 Share Find - Century Schoc - 10 - A Aa- & Cut LE Copy Format Painter E ALI SIE e, . 1 Normal 1 No Spac... Heading 1 1 Heading 2 Title Subtitle Subtle Em... Emphasis Paste BIU - abe x, x? A-aly - A- aac Replace Select Clipboard Font Paragraph Styles Editing Opportunity cost of Capital. (10 points) 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. e Set up a timeline depicting this stream of cashflows. f. Should you greenlight the development of the new product or not? | Page 2 of 2 486 words LX + 100% I a W PL ^ )) 11:29 AM 2/10/2021