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 60 percent chance of success. However, the firm can conduct customer segment research, which will take a year and cost $1.14 million. By going through research, the company will be able to better target potential customers and will increase the probability of success to 75 percent. If successful, the baby powder will bring a present value profit (at time of initial selling) of $19.1 million. If unsuccessful, the present value payoff is only $6.1 million. The appropriate discount rate is 14 percent. Required:
Calculate the NPV for the firm if it conducts customer segment research and if it goes to market immediately.

NPV = $13.9m

NPV = $11.05m (if conducts customer segment research)

Explanation:

DATA

Successfull probability = 60%

Unsuccessful probability = 40%

Initial selling = $19.1m

Unsuccessful present value  = $6.1 m

Research cost = $1.14m

Discount rate = 14%

Solution ( NPV If the firm goes to market immediately)

NPV = (Successful probability x initial selling) + (Unsuccessful probability x Unsuccessful present value)

NPV = (60% x $19.1m) + ( 40% x $6.1 m)

NPV = $11.46m + $2.44m

NPV = $13.9m

Solution (NPV if the firm conducts customer segment research)

NPV = ((Successful probability x initial selling) + (Unsuccessful probability x Unsuccessful present value)/1+discount rate ) - research cost

NPV =

NPV = $12.19m - $1.14m

NPV = $11.05m

Note: We can calculate NPV if the firm conducts customer segment research by dividing NPV calculated above by (1+discount rate) and research cost is deducted from the whole.

the correct answer would be b, when, queen, calder hall and london.

explanation:

we always capitalize words when a paragraph or sentence is starting, when an important name is used, when a place is being written, or simply when a noun is used, etc. so in this sentence, sentence is starting from 'when', so it will be written in capital letters. secondly, queen is considered to be an important person, so it will also be written in capital letter. next, the name of the town is mentioned, i-e calder hall, which will also be written in capital letters. in the last,   city name is being used, 'london', which will also be written in capital letters. so option b is the most appropriate one.

3,500 beverages

explanation: