Ang Electronics Inc. has developed a new DVD$-$R$.$ If the DVD$-$R is successful, the PV of the payoff $($when the product is brought to market$)$ is $$37$ million. If the DVD$-$R fails, the PV of the payoff is $$24$ million. If the product goes directly to market, there is a $34$ percent chance of success. Alternatively, Ang can spend $$9\mathrm{.}0$ million immediately and delay the launch by one year to test market the DVD$-$R$.$ Test marketing would allow the firm to improve the product and increase the probability of success to $80$ percent. The appropriate discount rate is $14$ percent.

a$.$ Calculate the NPV of going directly to market now. $($Round the answer to the nearest whole number. Enter the answer in dollars, not millions of dollars. Omit $ sign in your response.$)$

NPV $

b$.$ Calculate the NPV of test marketing first. $($Do not round intermediate calculations. Round the answer to $2$ decimal places. Enter the answer in dollars, not millions of dollars. Omit $ sign in your response.$)$

NPV $.$ $

c$.$ Should the firm conduct test marketing?

Yes

No