Company C is considering a new project that is expected to last
for 5 years. Its marketing group expects annual sales of $40
million for the first year, increasing by $10 million per year for
the following four years. Manufacturing costs (i.e., COGS) and
operating expenses (excluding depreciation) are expected to be 40%
of sales and $7 million, respectively, from years 1-5. Developing
the product will require upfront R&D and marketing expenses of
$8 million total in period 0. The...