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DNATECH Has Developed a Hair Growth Treatment at a Cost

Question 59

Multiple Choice

DNATECH has developed a hair growth treatment at a cost of $10 million. They can license the technology to another company for a period of 10 years. What is the minimum annual free cash flow they could accept in order to reach break-even NPV on this product? Use a discount rate of 8%.


A) $1,490,295
B) $1,639,324
C) $1,108,000
D) $1,000,000

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