Shawn paschal has been working on an advance technology for use in the green fuel.production at King Fisher Aviation. He is almost finished with the technology and anticipates the first cash flow from the technology to be $200000 received 2 years from today. Subsequent annual cash flow will grow at 4.5 in perpetuity.

What is the present value of the technology if the discount rate is 12 percent?

Evaluate the proposed technology. What is your recommendation on the adoption on the new technology? Explain your reasoning.