A publishing company is trying to decide if it pays to develop a new textbook. The new textbook will be completed and ready for sale in 3 years.

A publishing company is trying to decide if it pays to develop a new textbook. The new textbook will be completed and ready for sale in 3 years. Cash flows from sales of the textbook will be $18000 per year for 10 years, with the first cash flow to be received four years from now. If the publisher requires 15% return for such an investment, what is the maximum development cost of this new textbook?  ANSWER included formula and explanation

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