Reference no: EM13609082

A Company XYZ is considering manufacturing contact lenses in space. The project life time is 10 years and has the following phases: Phase 1: The engineering design and development requires 3 years. No production is done during this period. The costs are: Labor $ 2,703,807 per year paid at the end of each Material $823,171 paid at the end of the first year Phase 2: to launch the spacecraft into orbit, operate the equipment from the ground by remote control, and recover the spacecraft with the product. The phase is completed in one year, and will be repeated for the next 6 years for a total of 7 launches. Costs include (all costs are paid at the end of each year): Launch $ 7,000,000 Insurance$ 600,000 Labor $ 1,800,000 Material $ 800,000 The annual receipts as a result of phase 2 are $ 15,210,234. The minimum attractive rate of return is i=25%. Remember that the disbursements and receipts are always made at the end of the year unless stated otherwise. Information regarding your previous answers and precision for current answers: Click here Please notice: Do not enter units or "," with your answer Round up your answer to the nearest dollar 7. What is in $ the present worth of all disbursements and receipts during the life time of the project, evaluated at the beginning of the first year? You must enter a signed value (+ or -). Remember, if the the present worth of all disbursements and receipts is positive for 25% interest rate, the company will make at least 25% annual return on their investment.