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Panoply Genetics has two new genetic tests in the pipeline. The first test will require...

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Finance

Panoply Genetics has two new genetic tests in the pipeline. The first test will require investment of $600,000 per year in years 0, 1, and 2. In year 3 and every subsequent year, it will generate $450,000 in free cash flow. The discount rate on this project is 15%.

The second test is almost ready to go; it requires an investment of $300,000 right now in year 0. In years 1 through 10, it will generate $80,000 in operating cash flows; in year 11 it will stop. The discount rate on this project is 7%.

What is the total NPVGO of the two projects?

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