Business, 31.10.2019 06:31 kell22wolf

B& b has a new baby powder ready to market. if the firm goes directly to the market with the product, there is only a 55 percent chance of success. however, the firm can conduct customer segment research, which will take a year and cost $1.2 million. by going through research, b& b will be able to better target potential customers and will increase the probability of success to 70 percent. if successful, the baby powder will bring a present value profit (at time of initial selling) of $19 million. if unsuccessful, the present value payoff is only $6 million. the appropriate discount rate is 15 percent. calculate the npv for the firm if it conducts customer segment research and if it goes to market immediately

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B& b has a new baby powder ready to market. if the firm goes directly to the market with the pro...

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