A company is allocating $10 million to develop a new product. This money will be spent continuously for a period of 3 years (it is assumed that product sales will cover expenses in this process). If this money is deposited into an account that consistently earns interest at annual rates of (a) 12%, (b)10.75%, how much money can be withdrawn at most for the duration of the 3-year period?

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A: The given answer is correct

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A:

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A: In this we have to calculate present value of expenses and than find out equivalent annual expenses.

Q: can someone answer part a

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A: Hi there, Thanks for posting the questions. As per our Q&A guidelines, the solution for first…

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A: The question is based on the concept of Financial Management.

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