Business, 19.10.2019 01:20 zitterkoph

Ang electronics, inc., has developed a new dvdr. if the dvdr is successful, the present value of the payoff (when the product is brought to market) is $33.1 million. if the dvdr fails, the present value of the payoff is $11.1 million. if the product goes directly to market, there is a 60 percent chance of success. alternatively, ang can delay the launch by one year and spend $1.21 million to test market the dvdr. test marketing would allow the firm to improve the product and increase the probability of success to 90 percent. the appropriate discount rate is 10 percent.

calculate the npv of going directly to market and the npv of test marketing before going to market. (enter your answers in dollars, not millions of dollars, e. g., 1,234,567. do not round intermediate calculations and round your answers to the nearest whole number, e. g., 32.)

npv go to market now $

npv test marketing first $

should the firm conduct test marketing? no yes

Answers: 2

Show answers

Other questions on the subject: Business

Business, 21.06.2019 20:00, lilakatedancer

To be able to better compare stock performance within the same industry, similar companies are grouped into? a)market sectors b) industry blocks c) performance sectors d) average earning blocks

Answers: 1

continue

Business, 22.06.2019 21:50, elijahjacksonrp6z2o7

The third program provides families with $50 in food stamps each week, redeemable for both perishable and nonperishable food. the fourth policy instead provides a family with a box of nonperishable foods each week, worth $50. use two graphs to illustrate that a family may be indifferent between the two programs, but will never prefer the $50 box of nonperishable foods over the $50 in food stamps. state your answer and use a consumer choice model for perishable food and nonperishable food to graphically justify your choice.

Answers: 1

continue

Business, 23.06.2019 03:00, momo1039

By changing its recipe, a smoothie chain is reacting to a change in the environment. while it is important to be able to quickly adapt, it is also important to take a proactive approach to changes in the marketing environment. implementing a proactive approach requires constantly scanning and analyzing the environment so that changes do not come as a surprise. the statements below are findings from environmental scanning and analysis. select the marketing environment force that best describes each of the statements listed.

Answers: 3

continue

Business, 23.06.2019 11:40, serellehunt

Anewspaper story on the effect of higher milk prices on the market for ice cream contained the following: "as a result [of the increase in milk prices], retail prices for ice cream are up 4 percent from last year. . and ice cream consumption is down 3 percent." source: john curran, "ice cream, they scream: milk fat costs drive up ice cream prices," associated press, july 23, 2001. based on the information given, what is the price elasticity of demand for ice cream?

Answers: 1

continue

You know the right answer?

Ang electronics, inc., has developed a new dvdr. if the dvdr is successful, the present value of the...