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Gibber Corporation has an opportunity to sell a newly developed product in the United States for a period of 5 years. The product license would be purchased from NewGroup Company. Gibber would be responsible for all distribution and product promotion costs. NewGroup has the option to renew the agreement, with modifications, at the end of the initial 5-year term. Gibber has developed the following estimated revenues and costs that would be associated with the new product:  The working capital required to support the new product would be released for investment elsewhere if the product licensing agreement is not renewed. Using the net present value method of analysis and ignoring the effects of income taxes, the net present value of this product agreement, assuming Gibber has a 20% cost of capital, would beA. $7,720 B. $(64,064) C. $(72,680) D. $(127,320) |