Your company has an opportunity to purchase a patent that will expire 4 years in the future. The price would be $7.6 million. Buying the patent would enable you to produce a product at the following cost structure: Variable cost I unit 14.02 Fixed cost I year 3142855 You would charge a price of $40 per unit. Demand for the product would grow over time: Year 1 120,000 units Year 2 140,000 units Year 3 160,000 units Year 4 180,000 u nits If you buy the patent you will need to spend $100,000 immediately to recongure your factory. In addition, using the factory to make the patented product will prevent you from making other things in years 1 to 4. The opportunity cost of that lost production would be $200,000 per year. After year 4 the patent expires and you anticipate low cost competitors will enter the market and drive prices down. As a result whether you buy the patent or not should not depend on any expected profits posteyear 4. Note that the indicated fixed costs listed above include amortization on the patent. Amortization would he 25% of the cost of the patent each year. (Le. straight line over the 4 year useful life.) The discount rate is 11.1%. Calculate the appropriate amount to include in an NPV calcuiation for year 0. {Not the present value, but the amount that would be present valued.) In other words, exclude any effects for other years. Give the answer as a number of I million {round to 2 decimal places). So e.g., 6,444,265 should be written as 6.44. Calculate the appropriate amount to include in an NW calculation for year 1. (Not the present value, but the amount that would be present valued.) In other words, exclude any effects for other years. Give the answer as a number of $ million (round to 2 decimal places). 50 e.g., 6,444,265 should be written as 6.44. An Ewen 3 Calculate the appropriate amount to include in an NW calculation for year 2. {Not the present value, but the amount that would be present valued.) In other words, exclude any effects for other years. Give the answer as a number of $ million (round to 2 decimal places). 50 e.g., 6,444,265 should be written as 6.44. Notwithstanding the answers you gave in the prior 3 questions, assume the annual amounts for all years are: Year [l 6.5 million Year 1 2.19 million Year 2 2.36 million Year 3 2.?4 million Year 4 2.23 million Calculate the NPV for buying the patent. Give the answer as a number of $ million {round to two decimal places]