Problem
Micro Motors is evaluating a new line of products that will require several years of R&D. New lab equipment that costs $200,000 is needed, and salaries and other expenses will cost $300,000 per year for 4 years. Revenues from the new products begin at the end of year 5, and they are $250,000 per year higher than expenses. If Micro Motors uses an interest rate of 10% and a time horizon of 20 years, what is the EAW of this product line?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.