Calculate the break-even time for the new product

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Break-even time. Princeton Corporation's research and development department is presenting a proposal for new product research. The new product will require research, development, and design investments of $6 million (discounted cash flow). Sales will begin after four years and will generate an annual discounted net cash flow of $1.5 million starting in year three.

a. Calculate the break-even time for the new product.

b. What can Princeton Corporation do to reduce break-even time?

Reference no: EM13903412

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