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Ang Electronics inc has developed a new DVD-R. If the DVD-R is successful, the PV of the payoff fwhen the product is brought to market)

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Ang Electronics inc has developed a new DVD-R. If the DVD-R is successful, the PV of the payoff fwhen the product is brought to market) is $42 million. If the OVD-R fails, the PV of the payotf is $29 million. If the product goes directly to market, there is a 32 percent Test macketing would allow the firm to improve the product and increase the probability of success to 80 percent. The appropriate chiscount rate is 13 percent a. Caiculate the NPV of going diectly to market now (Round the answer to the nearest whole number, Enter the answer in doliars. not mililions of dollars. Omit 5 sign in your response.) NPV $ D. Caicufate the NPV of test marketing first: (Do not round intermediate calculations. Round the answer to 2 decimal places. Enter the answer in dollars, not miltions of doliars. Omit $ sign in your response.) NPV s c. Should the tirm conduct test marketing? Yes No

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