Question
A firm has estimated the NPV of a new product release as -$100,000. However, if the product is a failure, the firm estimates it can
A firm has estimated the NPV of a new product release as -$100,000. However, if the product is a failure, the firm estimates it can sell off the equipment to help cash flow. An analyst estimates the value of abandoning the product release at $125,000. The cost of capital for the firm is 10%. What is the project value for the firm?
| -$100,000 | ||
| $10,000 | ||
| $25,000 | ||
| $225,000 |
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Financial Crimes Psychological Technological And Ethical Issues
Authors: Michel Dion , David Weisstub, Jean-Loup Richet
1st Edition
3319324187,3319324195
