Question: 3. [5 Points) Five Star, Inc. is considering developing a new device called Universal Direction Assistance (UDA). The firm spent $10 million doing a comprehensive

3. [5 Points) Five Star, Inc. is considering developing a new

3. [5 Points) Five Star, Inc. is considering developing a new device called Universal Direction Assistance (UDA). The firm spent $10 million doing a comprehensive market analysis on the potential demand for this device last year. Then, the financial manager used NPV approach to evaluate whether the firm should take on this project or not. What is this $10 million to the project? When the financial manager estimated the incremental cash flows to be generated by this project, should this $10 million be included in the incremental cash flows of the project

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