Post Utme Rsu 2019 Commerce Question 6

A company is considering the introduction of a new product line. The product has a high potential for success, but it also has a high risk of failure. The company's management is divided on the issue, with some members advocating for the introduction of the product and others opposing it. The company's financial manager has estimated that the product will require an initial investment of ₦50 million and will generate revenue of ₦20 million per year for the first three years. After the first three years, the revenue is expected to increase by 10% per year. The company's cost of capital is 12% per year. What is the net present value (NPV) of the product line?