have been recently hired as a business analyst. Your firm, Appwater Technologies, believe it will bring the next greatest app to the global market. Số far, your firm has spent the following 17: 2.5 million 18: 3.0 million 19: 5.0 million 20: 10.5 million developing the software to support the launch of the firm's debut app product. Investors, however, are growing nervous and have asked the firm to provide an analysis of future costs and revenues. After talking with gineers and product managers, you have developed the following projections of cost and revenue 21: 5 million in cost and 0 in revenue 22: 2 million in costs and 1 million in revenue 23: 2 million in costs and 4 million in revenue 24:4 million in costs and 8 million in revenue 25:4 million in costs and 12 million in revenue ven the information at hand, and a discount rate equal to 0.13, what is your estimate of the net present value of your firm's debut project? ake sure to enter your answer in millions, that is, 60,200,000 = 60.2.
have been recently hired as a business analyst. Your firm, Appwater Technologies, believe it will bring the next greatest app to the global market. Số far, your firm has spent the following 17: 2.5 million 18: 3.0 million 19: 5.0 million 20: 10.5 million developing the software to support the launch of the firm's debut app product. Investors, however, are growing nervous and have asked the firm to provide an analysis of future costs and revenues. After talking with gineers and product managers, you have developed the following projections of cost and revenue 21: 5 million in cost and 0 in revenue 22: 2 million in costs and 1 million in revenue 23: 2 million in costs and 4 million in revenue 24:4 million in costs and 8 million in revenue 25:4 million in costs and 12 million in revenue ven the information at hand, and a discount rate equal to 0.13, what is your estimate of the net present value of your firm's debut project? ake sure to enter your answer in millions, that is, 60,200,000 = 60.2.
Chapter17: Capital And Time
Section: Chapter Questions
Problem 17.6P
Related questions
Question
![You have been recently hired as a business analyst. Your firm, Appwater Technologies, believe it will bring the next greatest app to the global market. So far, your firm has spent the following
2017: 2.5 million
2018: 3.0 million
2019: 5.0 million
2020: 10.5 million
in developing the software to support the launch of the firm's debut app product. Investors, however, are growing nervous and have asked the firm to provide an analysis of future costs and revenues. After talking with the software
engineers and product managers, you have developed the following projections of cost and revenue
2021:5 million in cost and 0 in revenue
2022: 2 million in costs and 1 million in revenue
2023: 2 million in costs and 4 million in revenue
2024: 4 million in costs and 8 million in revenue
2025: 4 million in costs and 12 million in revenue
Given the information at hand, and a discount rate equal to 0.13, what is your estimate of the net present value of your firm's debut project?
Make sure to enter your answer in millions, that is, 60,200,000 = 60.2.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff3f067f1-a3e0-4695-9128-2dd90124f66d%2Fa76efa08-6500-437f-bc39-9a8b35a3cea6%2F0gajjs_processed.png&w=3840&q=75)
Transcribed Image Text:You have been recently hired as a business analyst. Your firm, Appwater Technologies, believe it will bring the next greatest app to the global market. So far, your firm has spent the following
2017: 2.5 million
2018: 3.0 million
2019: 5.0 million
2020: 10.5 million
in developing the software to support the launch of the firm's debut app product. Investors, however, are growing nervous and have asked the firm to provide an analysis of future costs and revenues. After talking with the software
engineers and product managers, you have developed the following projections of cost and revenue
2021:5 million in cost and 0 in revenue
2022: 2 million in costs and 1 million in revenue
2023: 2 million in costs and 4 million in revenue
2024: 4 million in costs and 8 million in revenue
2025: 4 million in costs and 12 million in revenue
Given the information at hand, and a discount rate equal to 0.13, what is your estimate of the net present value of your firm's debut project?
Make sure to enter your answer in millions, that is, 60,200,000 = 60.2.
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