practical management science – excel

 A software company is considering translating its program into French.  Each unit of the program sells for $50 and incurs a variable cost of $10  to produce. Currently, the size of the market for the product is  300,000 units per year, and the English version of the software has a  30% share of the market. The company estimates that the market size will  grow by 10% a year for the next five years, and at 5% per year after  that. It will cost the company $6 million to create a French version of  the program. The translation will increase its market share to 40%.  Given a 10-year planning horizon, for what discount rates is it  profitable to create the French version of the software?