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Your company has been offered a contract for the development and delivery of a solar-powered military troop transport vehicle. The request for proposal provides all

Your company has been offered a contract for the development and delivery of a solar-powered military troop transport vehicle. The request for proposal provides all the necessary technical specifications and it also stipulates that two workings, economically feasible prototypes must be delivered in four years, at which time you will receive your only customer paymenta single and final payment of $50 million. Assume a reinvestment interest rate of 18% for all the monies received over the next four years. (You may ignore income taxes.) a. What lump-sum dollar amount would you be willing to accept today instead of the $50 million in four years? (Hint: Exhibit 2 will be useful in answering this question.)

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