Question: An R&D project for a new product has already required the expenditure of $200K. Spending another $100K for a license on another firms patent will

An R&D project for a new product has already required the expenditure of $200K. Spending another $100K for a license on another firms patent will com- plete the project. Net returns from the product will be $20K per year for 10 years. If the firms i is 10%, what is the PW for continuing? Should the firm continue?

PW = present worth or present value

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