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?