Your firm just acquired a patent with 5 years remaining that grants exclusive production rights for a new type of shoe. Production facilities for 200,000 units per year will require an immediate capital investment of $25 million. Production can begin 1 year from today (meaning first year with revenues is 2 years from now). Production costs are $65/unit and the marketing team is confident all 200,000 units can be sold at $100 each (in real terms). Once the patent protection expires, the marketing team has no idea what the price will be. The real cost of capital for this project is 9%. Assume capital and production costs will remain constant (in real terms), there are no taxes, and that the production facility can operate for up to 12 years and has no salvage value. Competitors know this technology and can enter the market as soon as the patent expires. That is, they can make their initial investment 5 years from now and begin selling similar products 6 years from now, seeing their first revenues in year 7