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\mathrm{.}12$ 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 $$18\mathrm{.}2$ million. If

unsuccessful, the present value payoff is only $$5\mathrm{.}2$ 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.