Question: Domer Companys research and development department is presenting a proposal for new-product research. The new product will require research, development, and design investments of $500,000

Domer Company’s research and development department is presenting a proposal for new-product research. The new product will require research, development, and design investments of $500,000 (discounted cash flow). Sales will begin after two years and will generate an annual discounted net cash flow of $200,000 starting in year three.

Calculate the break-even time for the new product.

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