Question: Factor Markets ( Capital ) A tech startup is considering investing in a new software development project. The initial investment for the project is $

Factor Markets (Capital)
A tech startup is considering investing in a new software development project. The initial investment for the project is $5 million. The company estimates that the annual revenue from the software will be $2.5 million over the next 6 years. Additionally, they anticipate that the annual service cost of the software will be $800,000. At the end of the 6 years, the software will likely be disrupted by a more advanced technology and have no resale value. If the annual interest rate is 5%, should the startup invest in the project? What is the Net Present Value (NPV) of the investment?
Factor Markets ( Capital ) A tech startup is

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